The Nigerian economy has recently been in a recession. Several economic experts in the country have remarked that this is mainly due to ill-managed businesses and corruption. They also believe that small revisions in the management systems and political systems and overall administration and the reduction in the corruption can lead to a notable improvement in the financial state of the country.
Some of the reasons that caused the recession in Nigeria hitting several businesses that you have to keep in mind if you are to invest with Lexington Code are:
- Poor administration of the business sector
- Current economic policies
- Over-dependence that the country now has on the import of foreign goods
- The several controversies associated with the budget of 2016
- Pipeline vandalism and militant issues that Nigeria faced.
All these have led to the current recession in Nigeria. This is also said to be one of the worst ones in the country in the last 29 years.
The scope for growth:
Financial analysts and economists in Nigeria have now come up with predictions that Nigeria would soon be growing out of its recession period. They have emphasized the need for better economic policies that would promote the growth of the economy.
There have been professional groups all over the country gathering and analyzing the macroeconomy of the country to get an insight into the financial outlook to expect for the coming year. These are also backed by the investors, research companies, and global financial institutions.
To recover from the current recession, the management framework of the macroeconomy has to be made more robust. Recession can occur in any economy that is market-driven. The same happened with Nigeria. But this is not going to be a long-term scenario. The economy of Nigeria would most likely improve by 0.8% in the coming year. This has also been validated by the International Monetary Fund. The World Bank predicts a 1% growth.
The current fiscal policies of Nigeria would also require a little tweaking for effective improvements in the economy of the nation. There should be enough focus given on thinking long term. Though the recovery from the current recession is the first and foremost objective, the plan of action should also involve the amendment of the monetary policies of the country to ensure long-term stability of the economy. This would ensure that entrepreneurs are more confident in starting up their businesses in Nigeria. This is pretty much the need of the hour. This would, in turn, improve the Nigerian job market and further promote the sustainable growth of the country’s economy.
The Gross Domestic Product (GDP) of the country is also predicted to increase by 2.3% in 2018. This is good news as it would significantly improve the financial state of the country.As the overall global economy is also projected to grow by 2.7% Nigeria too has a bright prediction for the year ahead.
As the global financial institutions have recorded projections of assured recovery from recession, the country’s economists continue to concentrate on growth besides focusing on the recovery process.