Top 10 Effects of recession on ordinary man in Nigeria

Effects of recession on ordinary man in Nigeria

It’s no longer an exaggeration that Nigeria is in recession even death and dump man on the street knows that there is scarcity of dollar because that is the new song on everyone’s lips. In economics Recession can be defined as the fall in GDP (Gross Domestic Product) / National output. In layman language recession means the scarcity of money and increase in price of commodities.

To cut the long story short these are the effects of economic recession on ordinary Nigeria man:

1. Rise in price of commodities:- there is an increase in the price of every commodities to the extent that  whatever you will buy say for #100 before hardily you will see it buy at the rate of #200.
2. Scarcity of money:- had it been the price of commodities only rise and there is money to buy them it would have been better but here there is increase in price of commodities and scarcity of money simultaneously.
3. Unemployment:- due to bankrupt some firm will lay off their workers while some will not even border to employ because there is no capital to pay salary..
4. Lower wages:- both the government and private firms will try to reduce costs by keeping wages low, Osun state as an example cuts the salary of its workers to half.
5. Low revenue:- due to recession both the public and private firms will generate less revenue compare to when there is no recession.
6. High crime rate:- People will try to apply the law of survival of the fittest by engaging in criminal acts one way or the others.
7. Protest:- people will tend to display their frustration on government buy engaging in both peaceful and violence protest.
8. Lost output:- No investor will like to invest his/her money on a recession inflicted economy thereby decrease the economy products output also there would be no sufficient capital to invest.
9. Budget deficit:-  A recession will cause an increase in the budget deficit and public or private firm may runs into debt.
10. Borrowing:- Government, private firms and people will result to borrowing in order to survive.