the Ministry of Water Resources together warned of high risk

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the Ministry of Water Resources together warned of high risk

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by Olatunji Saliu

ABUJA, Sept. 1 (Xinhua) -- With its economy officially entering recession, Nigeria is left with little choice but to urgently deal with a bevy of recalcitrant problems head on, which range from surging inflation to depleted foreign reserves and weaker Naira.

The West African country entered a recession on Wednesday, when figures released by the National Bureau of Statistics (NBS) showed the second quarter Gross Domestic Product (GDP) fell 2.06 percent year on year, after slipping 0.4 percent in Q1.

Recession, which is a major decline in sector-by-sector economic activities lasting more than a few months, is technically indicated by two consecutive quarters of negative economic growth as measured by the country's GDP.

For the oil sector, which is Nigeria's mainstay, the NBS report indicated that the vagaries of global oil price, the drop in local production of crude oil and the violent activities of militants in the southern region of the country had made a dent in the money-spinning industry.

Most businesses in Nigeria are connected to government and 80 percent of government resources or cash flow comes from the oil sector.

Positing that the oil and gas sector accounts for about 25 percent of the GDP and the doom and gloom in the industry can have an inordinate effect on the rest of the economy, local financial experts have called on the Nigerian government to declare a "state of emergency" on the economy.

Nigeria's present economic situation has already been described, both by government and financial experts, as "the worst possible time ever", with many predicting that this recession may take up to three years before the country can come out of it.

Financial expert Tony Ejinkeonye said without a stimulus of adequate scale and proper management, the economic situation would be more precarious than its current state.

To come out of the present situation, the Nigerian government must create valuable economic motivation plan to stimulate growth, he said, noting "sadly, the nation's GDP has been on the decrease since the last quarter of 2015."

"This is not really a good time for the country," said Ejikeonye, the current president of the Abuja Chamber of Commerce and Industry.

He pointed out that the recession has already led to unemployment, lower wages and incomes, as well as lost opportunities.

He said with time, more economic opportunities, private capital investments and education are likely to suffer in the current economic blues if nothing urgent was done.

"The effects will be long-lived if not properly managed. Economic recession can lead to long-lasting damage to individuals' economic situations and the economy more. Jerseys Cheap Jerseys Cheap Throwback MLB Jerseys Wholesale Wholesale Jerseys Free Shipping Nike NFL Jerseys Cheap Replica Soccer Jerseys China Adidas NHL Jerseys Wholesale Wholesale White Sox Jerseys Wholesale Detroit Tigers Jerseys Wholesale Kansas City Royals Jerseys
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