Nigerian recession: Nigeria economy dey recession under Muhammadu Buhari watch - See wetin dey happun during economic recession

Nigerian economy enta recession on 21 November 2020 wey experts dey predict say fit be worse than di one wey happun for August 2016.

Stock market go open for di first time today to embrace di reality say Nigeria economy don dive deep into yet anoda economic recession.

Inside economics, recessions generally occur wen drop in spending happun for every sector.

Nigeria goment bin tok for May 2020 say coronavirus pandemic and di way oil prices dey fall go make di kontri enta recession.

Na wetin Zainab Ahmed, di Minister of Finance, Budget and National Planning bin tell one National Economic Summit meeting wey happun for Abuja for May dis year say:

"On di economy, COVID-19 don make oil prices collapse. Dis go get negative impact wey don already dey show for di revenue and di moni wey di kontri dey make from foreign exchange."

Wetin fit happun to you during economic recession?

Recession na simple business cycle wen money no flow and pipo no make gains wey be say general drop dey for economic activity.

Nigeria National Bureau of Statistics third quarterly report wey end Septemer 2020 show say di west African kontri Gross Domestic Product [GDP] drop by 3.62 percent just as e bin drop for di second quarterly report wey end June 2020.

Tori be say unlike for 2016, di recession dis time around fit dey worse as no be only oil dey affected. Other sectors like arts and entertainment, real estate, professional and technical service and education don also contract significantly.

See wetin dey happun during economic recession:

Unemployment - Inside a recession, firms go dey produce less and therefore go need fewer workers - dat one mean say pipo including you fit loss jobs during dis period.

Fall in interest rate - during recessions, interest rates tend to fall. Dis na because inflation dey lower and Central Banks wish to try to pump money alias stimulate di economy.

Government borrowing and spending go increase - With rising unemployment, di government go need to spend more and try to use wetin dem dey call expansionary fiscal policy. This involves cutting tax rates and increasing government spending.

Stock market fall - Stock Market fit fall because firm dey make less profit.

Investment fall - Investment go fall as firms go reduce risk-taking sake of uncertainty. E fit also dey harder to borrow from banks.

Dis recession go make am 3 times wey Nigeria don enter recession under President Muhammadu Buhari.

According to Reuters, Nigeria bin dey long recession from 1982 until 1984. President Buhari bin di Military head of state from 1983 to 1985 afta im overthrow Shehu Shagari.

Also, between April and June of 2016 Nigeria enta recession as di economy contract by 2.06% after di kontri see two consecutive quarters wey di economy decline for growth.