The submission by Nigeria’s minister of finance, Mrs Kemi Adeosun a forth-night ago that Nigeria is “technically in recession” came
at a time the economic indices were quite clear that the nation’s economy was in tatters. Adeosun and her team had continually lived in denial, promising better days, even as the Nigerian economy was gradually brought to its knees.
Minister of finance, Mrs Kemi Adeosun Before and after the minister’s pronouncement, there have been a barrage of bad news emanating from all sectors of the ailing economy.
Adeosun used the term “technically in recession” perhaps in order not create panic among the populace.
But the fact is that Africa’s largest population is already witnessing a full blown recession. IGBERE TV lists 10 of these recent happenings that clearly shows Nigeria is in full recession.
Read below:
1. Massive lay-off of workers in banks and financial institutions
Two months ago, three Nigerian banks cut down on the number of their employees. Skye Bank Plc sacked 175 of its employees, Ecobank sacked 1,040 and Diamond bank fired 200 of its workers.
The banks were obviously strangulated by the harsh economic realities that is not favourable to their business and survival in an otherwise collapsing economy.
2. State governments can’t pay salaries
Twenty-seven (27) states out of 36 cannot pay salaries of their staff. In spite of the bailout fund they received from the federal government, the states have failed to meet up with their obligations to their workers.
The situation is so bad that some states are owing their workers up to a year and the state governors has constantly reminded everyone that there is no where they can source for funds.
3. The federal government will borrow to fund the 2016 budget
The federal government has informed Nigerians that it will result to borrowing to fund the 2016 budget due to the declining price of oil in the international market.
“We have to borrow to implement on the projects we are embarking on,we cannot wait for oil to improve,” Nigeria’s minister of finance, Mrs Kemi Adeosun said.
The government is already in the the process of appointing two lead managers and a financial adviser to organize the issuance of $1 billion of Eurobonds this year. According to the Debt Management Office (DMO), the sale is the first tranche of a $4.5 billion Nigeria Global Medium-Term Notes Issuance Programme that runs through 2018.
4. Nigerian companies recording massive
The manufacturing sector is getting bleaker by the day as their earnings dim amidst the biting economic crunch. Recently, four major blue- chip Nigerian companies lost as much as N51.86 billion in the first half of 2016 as the economy continues to take a dip.
Nestlé Nigeria Plc, Nigerian Breweries Plc, Dangote Cement Plc and Lafarge Africa all suffered combined profit losses to the tune of N51.86 billion in the first half of the year.
5. Fuel price increase imminent
Oil marketers in Nigeria have raised an alarm over the imminent increase in the price of petroleum products due to dollar scarcity. The United States dollar hit an all-time high last week, as it exchanged for N400 at the parallel market making it difficult for the marketers to sustain their current mode of operations.
The marketers have warned that if the situation is not urgently addressed, the pump prices of petrol will not remain at the approved rates.
6. 14 foreign airlines exit Nigerian aviation market
Fourteen (14) airlines have withdrawn their services from Nigeria due to low patronage and the bad economy being experienced in the country. The airlines are among the 50 that operated the Nigerian routes some months ago. Some of those listed are Spanish-owned Iberia airlines, United Airlines and Air Gambia among others.
7. South Africa overtakes Nigeria as Africa’s biggest economy
South Africa has overtaken Nigeria as Africa’s biggest economy in dollar terms. The change in status of both countries was attributed to the appreciation of the rand, South Africa’s currency, and the devaluation of the Nigerian naira. Nigerian government through its apex bank – Central Bank of Nigeria (CBN) recently introduced a flexible foreign exchange regime.
8. Nigeria’s plunging currency
The currency has slumped 38 percent against the dollar since the central bank allowed it to trade freely in the inter-bank market on June 20, removing a currency peg that had deterred foreign investment and squeezed importers. Nigerian government through its apex bank – Central Bank of Nigeria (CBN) recently introduced a flexible foreign exchange regime.
9. Shutting down of Oil production
Nigeria is currently struggling to maintain its crude oil production following a spate of militant attacks and technical problems. Militant group, Niger Delta Avengers continue to disrupt oil production which in turn, affects the Nigerian economy. Nigeria is largely dependent on proceeds from oil to fund the budget but the resurgence of militancy in the oil rich Niger-Delta region.
10. Nigeria officials scouting for investors abroad
The Central Bank of Nigeria governor, Godwin Emiefiele and his deputy on economic policy, Dr Sarah Alade recently toured the U.S and U.K this week to seek for bond investors.
Unfortunately, both officials were said to have been disappointed as several investors in London told them there wasn’t enough liquidity in Nigeria’s foreign-exchange market for them to be comfortable buying naira bonds.
Like Us on Facebook!
![Nollywood Actress Ini Edo Goes Na k*ed Infront Of Olu Jacob In a Movie Scene [MUST WATCH VIDEO]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_uvTnTK53MKpmTa9YZsTT5exB0LEtuqRP9GOmJaJkwqQjt-a-aWCM-AwrghG6o72ckwDysNgGMN_wsAHXfRIXvWY-qAjrbuB_w-qmMY8RbY8v_Ajulbd-I-QJ6xg9NsXuRJYxqGsselHBnpXXsptIE=s0-d)
0 comments:
Post a Comment