Recession: how deep and for how long?


 Saturday September 10, 2016 11:10AM /FDC

After 3 decades of positive GDP growth, Nigeria slid into Recession with a cumulative negative growth of 2.4% for H1’ 2016.  The Buhari Administration has been shocked into a rude awakening and all hands now seem to be on deck.

The fiscal stimulus package is being reengineered to jump-start a stalled economy that was already tanking.

The good news is that the month-on-month inflation declined to 0.6%, annualized at 7.44%. This is much lower than the MPR and the T/Bill auction rate of 18%p.a.

The data of unemployment of 24% amongst 18 -24 year olds is alarming and is a ticking time bomb.  This will force the MPC to lower interest rates and encourage businesses to borrow, increase employment and economic activity. 

The managed floating exchange rate needs to be fine-tuned to curb the wide spread abuse by a cartel of Criminogenic bankers and conniving regulators. 


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