As in the rest of the world, the ongoing COVID-19 pandemic is having a major impact in Nigeria. With mass gatherings out and social distancing in, life is a lot different for many Nigerians right now. Of course, it is not just personal freedom that COVID-19 restrictions affect. The Nigerian economy is also looking at a period of depression and the prospect of severe recession.
This, of
course, comes hot on the heels of the 2016 recession in Nigeria, which people will remember all too
well. A small crumb of comfort for Nigerians is that any expected economic
downturn is likely to happen on a global scale. When you factor in the global
impact on jobs and the huge borrowing by many countries, including the UK, the
upcoming recession is going to hit many countries worldwide
The key thing for Nigeria now is to plan for this and look for ways to stabilize the economy, so it can deal with any economic depression. But how could it do this?
Look to end reliance on oil
Collapsing oil
prices are likely to hit Nigeria hard in the coming months. This also hints at
one major problem the country's economy still has – an overreliance on the
revenue oil brings in. A key step to stabilizing the Nigerian economy in the
future, therefore, is finding ways of bringing money into it that do not rely
on oil production.
If the Nigerian
government can help the country open up other major revenue streams, this could
be what is needed to make it through any global downturn. Of course, the key is
to diversify into areas that will not be unduly affected or that can prosper
under a downturn. Good examples that ministers could consider investing in
include IT, agriculture and transportation. Diversification could also help in
terms of creating sustainable industries to supply goods that are needed. This
would slash the amount that Nigeria spends on importing goods and help ease the
pressure on total spending as a result.
Encourage online casino sector more
One area that
the government could look into is further encouraging the country's online
casino sector. This is one industry that is not only very popular with the
public but which can also raise huge money in tax revenues for the national
coffers. As online casinos have to pay fees and taxes on their own revenues to
the Nigerian government, encouraging more online casinos would help stabilise
the economy during a recession. Of course, there are some top Nigerian casinos
online to play at
already – but there is always room for more.
If the Nigerian
government could encourage big-name global brands to invest in the country,
this could not only see more money coming into Nigeria from outside but also
create jobs. The added bonus is that Nigerians will spend the money won from
playing games in the local community, which will help businesses survive.
Sensible fiscal policies
Of course,
stabilising the Nigerian economy over a severe recession also comes down to
good fiscal policy from the government. While ministers need to find ways to
protect the economy, they must balance this with a sensible approach to putting
money into it. Whether this is keeping inflation down, finding ways to
encourage private business or keeping national borrowing in check, the
decisions made in this area will be critical. If more policies such as the
recent survival funds for
small businesses in Nigeria can be created, it could help a lot.
Education and training
It is widely
accepted that education and training are key to the health of any country's
economy. Having a trained, skilled workforce helps separate a country from
others, while also giving them a competitive advantage globally. This sort of
advantage could be key in any worldwide recession, as it will help a country to
attract business investment and thus create jobs. With this in mind, Nigeria
could look at putting more effort into education and training for its citizens.
Global depression needs to be planned for
The simple fact is that COVID-19 has made such a huge impact globally that most people know an economic depression is due to follow for many countries. Nigeria looks set to be one of those countries and this means the government must plan now for how it will protect the economy. As the above shows, there are some great ways to go about it and keep the country safe until things get back to normal again.
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