According the National Bureau of Statistics (NBS) the Nigerian economy slid into recession path in first quarter (Q1) of (since ) with real GDP of percent, the contraction of economic activities resulted from an evaporation of confidence and no new investments, inordinate delay in government speeding during the period, acrimonious legislative squabbles in approving budget, erosion in the value of Naira in the forex market, pipelines vandalism, misaligned currency and forex /07/29 · The recession period was characterised by a deep slump in the value of the Nigerian currency. Since oil proceeds contribute significantly to Nigeria’s forex earnings, forex scarcity heightened the pressure on manufacturers and other businesses 04/05/ · A foreign exchange expert with AFX Group, Mr. Claud Harvard, has warned Nigeria against the global trade war and looming recession
Forex Expert Warns Nigeria Against Global Trade War, Recession – Independent Newspaper Nigeria
Some attribute the recession to the drop in the oil prices in the global market, while some believe the activity of the militants and pipeline vandals in the Niger Delta region of the country which caused significant reduction in the volume of crude oil production was responsible for the recession.
The current economic situation in Nigeria was primarily caused by insufficient foreign exchange forex in the Recession nigeria and forex Bank of Nigeria CBN to fund imports. This with its recession nigeria and forex effects on the economy caused the recession. In a report by NBS, recession nigeria and forex, Nigeria received 95 per cent of its export earnings and 70 per cent recession nigeria and forex government revenue from the oil sector.
According a tweet posted by CNNMoney, Nigeria was estimated as the 3 rd world fastest-growing economy in with an estimate recession nigeria and forex 7 per cent growth, behind only Qatar 7. What now led to the recession? When the global crude oil prices dropped, the forex reserves also dropped due to over reliance on the sector, but the nation failed to devalue its currency which led to the shortage of forex earnings to fund imports.
This, however, made investors struggle to get forex for their imports. Given that the nation could not explore other investment opportunities for the production sustainability of the economy, the FPI and FDI investors got frustrated over the shortage of foreign exchange to pay for raw materials and machines, so they eventually left the market. When that happened, recession nigeria and forex, the value of production, which is the major function of GDP, began to fall.
The investors who decided to stay had to pay significantly more for these imports because of the high cost of production materials. Since then, the economy has witnessed a hiccup in its production capacity, thereby causing a steady drop in GDP. The economy recorded negative growth in the first quarter ofwhich led the economy into recession for the first time since a full-year recession in Apparently, the reason for the recession was not of the fall in oil prices or poor saving culture as many perceived, but by the lack of sound economic policy to create alternative foreign exchange earnings such as the non-oil exports.
These problems can be solved with policies that make the market attractive to foreign investors. These policies could include: reducing port charges and other hidden import duties, boosting foreign exchange reserves, and promoting both local and foreign investments in the country, recession nigeria and forex.
Once these actions are taken to provide a good economic environment, long-departed economic growth will come back again. photo credit: kenteegardin via photopin license …………………………………………………………………………………………………………………. About me: I am a citizen journalist trained by the International Centre for Journalists ICFJ to report vital health, environment and poverty related issues in the Niger Delta region of Nigeria.
I stepped up in my journalism career with training by the Bloomberg Media Initiative Africa BMIA to become a financial, economic and business journalist. I report economic data, trading sessions from Nigeria Stocks Market and other key financial institutions.
Opinions expressed in this article are those of the author and do not necessarily represent the views of the Commonwealth Youth Programme. Articles are published in a spirit of dialogue, recession nigeria and forex, respect and understanding. If you disagree, why not submit a response? Powered by Facebook Comments. Between and Julya total of 4, Nigeria-trained medical doctors relocated to Britain. Thoughts of persistent worry and fear are constant as we continue to fight what may seem…, recession nigeria and forex.
Contact Archive Republish Contribute Awards About Home. A Youth Blog supported by. Source: Bloomberg Terminal According a tweet posted by CNNMoney, Nigeria was estimated as the 3 rd world fastest-growing economy in with an estimate of 7 per cent growth, behind only Qatar 7.
Reach me on Twitter: SegunAndrews. photo credit: kenteegardin via photopin license ………………………………………………………………………………………………………………… About me: I am a citizen journalist trained by the International Centre for Journalists ICFJ to report vital health, environment and poverty related issues in the Niger Delta region of Nigeria. I am a passionate young man who has determined to keep telling the stories behind public data. Editor's Pick.
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04/05/ · A foreign exchange expert with AFX Group, Mr. Claud Harvard, has warned Nigeria against the global trade war and looming recession /09/20 · Nigeria depends on the oil and non-oil sectors. The draft MTFF/FSP predictably attributes the poor economic situation and the recession to low crude oil prices and bandwagon economic /08/28 · The current economic situation in Nigeria was primarily caused by insufficient foreign exchange (forex) in the Central Bank of Nigeria (CBN) to fund imports. This with its enormous effects on the economy caused the recession.3,5/5(6)
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