How impact of exit from recession can be felt

In the past few days, Nigeria was agog with the news that the country is finally out of recession as announced by the National Bureau of Statistics (NBS) and according to the report, the manufacturing industry and Agriculture was a major contributor that triggered the exit of Nigeria from recession.  The report showed that agriculture […]

In the past few days, Nigeria was agog with the news that the country is finally out of recession as announced by the National Bureau of Statistics (NBS) and according to the report, the manufacturing industry and Agriculture was a major contributor that triggered the exit of Nigeria from recession. 

The report showed that agriculture recorded a stronger positive growth of 3.01 percent while manufacturing grew for the second consecutive quarter in 2017 and was positioned at 0.64 per cent compared to 1.36 per cent recorded in the first quarter of 2017 to -1.62 per cent in the second quarter. Furthermore the Bureau stated that the core reason for this exit could be linked to the President Muhammadu Buhari’s administration’s policies on resuscitating the agricultural sector as well as encouraging local production and cultivation of crops.

Even at that, economist and financial experts have issued a stern warning on the need for the federal government not to be complacent on some policies such as provision of loans to the agricultural sector. In the same vein, financial experts have advised to need to concentrate on non-oil sectors of the economy like solid mineral. 

To the main issue, Nigerians who are at the receiving end of any policy and programme of the government, have received the news of Nigeria’s exit from recession with mixed reaction as majority on the streets still believe coming out of recession is just on the pages of newspapers and on the screen of television as no impact have been felt yet considering cash crunch, exorbitant prices of goods and services in the market as well as inadequate job opportunities for the teeming population of Nigerian graduates. 

The presidency in line with this also said President Muhammadu Buhari will not jubilate yet until Nigerians can afford to buy food items at a subsidized rate. As such the argument here is that since statistics has shown that Nigerian is out of Recession, how does a common man on the street feel such impact?

First and foremost, the agricultural sector of the country must be kept moving as suggested by financial analyst and economist. This can be achieved through increased budgetary allocation to the sector. In addition, agricultural loans to farmers across the 36 states of the country have to be sustained and improved. This is because to sustain and encourage local production, lending rate and procedures of obtaining loans should be flexible and not excluding interest attached.

Secondly, the youths which are expected to be the driving force of any economy must not be left behind. Though appreciable efforts by the federal government in youth empowerment programmes such as the Youth Entrepreneurship Support (YES) by the Bank of Industry (BOI) as well as the NPower  programme. However, these need to be more viable and accessible so that and above all sustained so that it can stimulate growth and development. It is important to establish the basis and platform which can bring out the best result in youth empowerment of youths. Another important factor for the impact of recession to be felt is the ability for the government to expand the Small and Medium Enterprises (SMEs) and make them more functional by providing soft loans and conducive atmosphere for these businesses to thrive

Finally, now that Nigeria is out of recession, it all bowls down to the common man on the street to feel the impact through improved living and better conditions which the federal are on course to achieve, but must not relent.

Philip Shimnom Clement, [email protected]