The Impact of Economic Recession on the Nigerian Population a Case Study of Edo State
CHAPTER ONE
OBJECTIVE OF THE STUDY
The main objective of the study is to ascertain the impact of economic recession on the Nigerian population; but for the successful completion of the study, the researcher intends to achieve the following sub objective
- to ascertain the effect of economic recession on the productivity of Nigerian;
- to ascertain the impact of recession on economic growth;
- to ascertain the relationship between recession and economic growth
- to evaluate the role of recession on economic development
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Since the current recession in Nigeria was officially declared in 2016, the economy has faced two particularly negative economic indicators– rising prices and low rates of employment. These will have devastating effects on many sectors of the economy for many years to come and housing will be one of the major ones affected as unemployment and high costs of home ownership are the chief reasons for homelessness worldwide. In fact, the Nigerian housing sector has been lagging behind many similar middle income economies since the 1980s and the recession is likely to have a more jarring effect on this sector compared to others unless economic planners take specific precautions to prevent this trend. In addition to the recession, Nigeria is also experiencing an increase in population growth and urban sprawl that is likely to further exacerbate the current housing problem. The current 2016 budget provision of ₦40 billion to provide 1 million units to counter an estimated 17-million-unit housing deficit is in no way adequate to face this challenge especially as the estimate is likely to increase greatly in the very short run.
Russia experienced a similar contraction in the size of its economy in its 1998 financial crisis along with a temporary increase in the population growth rate in the early 2000s and these factors directly led to a depression in the housing market during the same period. The increase in crime rates and corruption during this period was linked to instability and the poverty that a society experiences when its citizens lose the most important asset for most family units – housing. In comparison, the Nigerian is facing a similar situation. The Nigerian population has been growing by a steadily increasing rate as infant mortality continues to drop mainly due to the attainment of middle income status and global interventions such as the Millennium Development Goals and Sustainability Development Goals that continue to propel worldwide development measures.
Russia experienced a similar contraction in the size of its economy in its 1998 financial crisis along with a temporary increase in the population growth rate in the early 2000s and these factors directly led to a depression in the housing market during the same period. The increase in crime rates and corruption during this period was linked to instability and the poverty that a society experiences when its citizens lose the most important asset for most family units – housing. In comparison, the Nigerian is facing a similar situation. The Nigerian population has been growing by a steadily increasing rate as infant mortality continues to drop mainly due to the attainment of middle income status and global interventions such as the Millennium Development Goals and Sustainability Development Goals that continue to propel worldwide development measures. This growth will inevitably come with increased housing needs especially as the youth age group – 18-34 – become the largest and the group that is also most likely to seek housing as individuals or to start out families. In developed countries like the U.S. and most of Europe, the 65 and older age group (also called baby boomers) are becoming the largest age group and this will lead to a contraction in the demands on the housing market as more elderly citizens opt to sell their homes and live in assisted living with other members of their age group. Nigeria’s case will be the reverse of this trend and it would be wise to consider adopting some of the policies that these countries adopted when the baby boomer generation was still in its youth and the dominant age group in those populations.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to examine the impact of economic recession on the Nigerian population.
Sources of data collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment, the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the effect of economic recession on the Nigerian population.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the impact of economic recession in Nigeria.
Summary
Recession is a business cycle contraction, referred to as a general slowdown in economic activities. During recession, there is usually a decline in certain macroeconomic indicators such as GDP, employment, investment spending, capacity utilization, household income, business income, and inflation, with attendant rising unemployment rate. Recession could be caused by two broad factors: internal (endogenous) and external (exogenous), and that recession has impact on the economy through its effect on business, financial markets, stocks and dividends, product quality, credit conditions and socio-political structures. Instruments of monetary and fiscal policies can be used to counter recession and bring about economic growth. Monetary authority can pursue accommodating/easy monetary policy to stimulate economic activities. This is a situation where monetary authorities lower the cost of credit.
Conclusion
Based on this study it was concluded that economic recession highly affected the economic recession on the Nigerian population. Specifically, poverty level which is the mother of all socio-economic problems like unemployment, social crime and reduction in the national income. Furthermore, reduction in the price of crude oil in the world market be the major factors that affecting economy of Nigeria but if adequate measure could take place in promoting agriculture as substitute to oil product certainly the economy of the country would improve.
Recommendation
The following recommendations were made based on the findings of the study: Federal government must see that the price of crude oil is gear up in the world market. Both local and external investors must be encouraged to invest in Nigeria. Agriculture farm settlements must be revived by government in the rural areas. Consumption of locally produced goods and services must be encouraged. Government at all levels must provide enabling environment for domestic investment in terms of loan grant to local investors , provision of adequate infrastructural facilities, organizing entrepreneurial skills training, market for locally produced goods etc.
Reference
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- Igbuzor, O. (2006). Review of Nigeria Millennium Development Goals. 2005 report orgotive. [email protected] National Bureau of Statistics (2016). Economic recession worse expected. Vanguard Newspaper, September 1.
- National Directorate of Employment (2004). Jobs for all Brochure. Abuja Planning, Research and Statistics Department. National Directorate of Employment P. 17.
- National Directorate of Employment (2010). Generating more job opportunities, year 2010 annual report, Abuja. Planning, Research and Statistics Department, National Directorate of Employment.
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