THE IMPACT OF ECONOMIC RECESSION ON THE NIGERIAN POPULATION. A CASE STUDY OF EDO STATE

THE IMPACT OF ECONOMIC RECESSION ON THE NIGERIAN POPULATION. A CASE STUDY OF EDO STATE

Chapter one

INTRODUCTION

1.1 Background of the Study

Nigeria’s economy began to thrive before and after independence, despite the fact that it was basic. According to Oyewole (2016), Nigeria’s economy is primitive, with basic production equipment such as hoes, axes, and cutlasses, and production is based on muscle energy.

Oil was discovered soon after independence and remained in high demand until the 1970s. As a result, agriculture, which had previously been the mainstay of the Nigerian economy, was abandoned due to the discovery of large quantities of crude oil.

It is evident that every Nigerian has now recognised the perils of an economy that is heavily reliant on oil money, whose price is falling in the world market.

The dependence, combined with the high cost of operating and maintaining our political structure, was always a recipe for disaster. As a result, Nigerians have been forced to face the harsh reality that the economy is in recession.

The repercussions of the economic slump are already being felt by everyone, including unpaid pay cheques, the inability to pay rent, the difficulty to pay children’s school fees, and even the inability to feed. According to Wikipedia and Afe (2016), a recession is defined as a period of negative economic growth for two consecutive quarters.

It is also a business cycle contraction, which causes an overall decrease in economic activity. Macroeconomic metrics such as GDP (gross domestic product), investment spending, capacity utilisation, household income, firm profits, and inflation decline, while bankruptcies and unemployment rates rise. Recessions typically develop when there is a broad decrease in expenditure (an adverse demand shock).

This could be caused by a financial crisis, an external trade shock, an adverse supply shock, or the burst of an economic bubble. NDE (2004) stated that the development of a global economic recession in the 1980s resulted in Nigeria’s economy roaring ahead.

Conversely, Oyewole (2016) noted that roughly 57 percent of Nigeria population are living below $1 per day and live very poorly in all development indicators. The factor behind this is over population. National Directorate of Employment NDE (2010) said Nigeria has a