In more bad news, the International Monetary Fund (IMF) has projected that Nigeria’s economy will contract by about 1.8% this year. It also added that the contraction may constraint the growth of the entire region.
Other News
The Washington-based Institution cut its 2016 growth forecast for Nigeria from 2.3 percent projected in April, according to its World Economic Outlook update released on Tuesday. The projection for next year was reduced to 1.1 percent from 3.5 percent.
The Central Bank of Nigeria had in its press release introducing the flexible exchange rate policy also predicted that Nigeria will confirm it’s in a full-blown recession when the NBS releases its second quarter GDP report.
On Tuesday, the National Bureau of Statistics confirmed that Nigeria’s Inflation rate had spiked to an 11 year low of 16.5%. Nigeria is currently in a period of Stagflation, where inflation rate is galloping and GDPGrowth rate is declining. History shows that it’s a difficult position to be in for any country.
The Nigerian Economy has been in turmoil ever seen the price of oil started crashing in 2014 resulting in lower government revenue, loss of investments in critical sectors of the economy and foreign exchange outflows from Nigeria. This was also made worse by several flawed economic policy decisions made by the current government.
Recession or depression are just English word.,recession is it like you retreat, and if you’re free mental,and you understand you are retreating.IT MEANS A NEW ENERGY OR SPIRIT/SYNERGY THAT IS COMING.I ASSUMES IT WILL HAPPEN BY NEXT YEAR,I WAS HOPING THAT THE GOVT WILL CREATE THIS NEW FOREX BOND,WHICH THE FEDERAL MINISTRY HINTED WILL HAPPENED TO THE TUNE OF 200 BILION DOLLAR.if they have done this early year this recession will and can end this YEAR.
Why ? Why ?there is work to be done in Nigeria,i.e Nigeria have still undeveloped facilities,e.g hospital,roads,railoways,trams,privated owned homes.nigeria need to build about 1 million homes each year,at least,do Nigeria substute cement for brick,there are soil structured chemically located in various towns or villages to built homes .a comprehensive social security system,that can be self-funded.the present constution gives the local govt control to state govt,a guarantee is simply a legal or political or financial instrument authorizing somebody to do something,orif something goes wrong OR guarantee this will happen.WHY NOT STATE GOVT GUARANTEED SOME LGA EXTRA-BUDGET TO THE SUM OF 10 BILLION NAIRA WITHIN ONE YEAR STARTING NOW,AFTER THE STATE COUNCIL MEETING WHICH I THINK HAPPENS EACH YEAR.this open development to lga,bringing together govt and the people.
John Keyness wrote his book on this blah,blah,blah,on employment,interesr rate said when govt faces a depression,govt should increase deficit spending to cover,the aftermath of depression,and it’s becoming a feature in most countires,some nations operate a constant debt,some countrie debts exceeds their gnp.that is when president roosvelt made the great speech after the depression in America in the 1930 ” there is nothing to fear but fear itself”.
Credit swap,collateral obligation,mortgage,contract for differences,spreadbetting,the word contract for difference and spredbetting are the same,spreadbetting as investing terms are not used in America.with spreadbetting or contract for difference,you can get up to 500: 1, through your broker.i.e if you have 10,000 naira you time to 500,to invest in forex or shares.God saves Nigeria.
The govt is wasting a lot of time,why not Nigeria have a Nigerian term for the public financing. guarantee with redemption or without,.govt do not have to repays this fund,with the funding for enterprenuer/graduate, govt can give them free fund to do research,and call it bridging/mazine grant..THE PERCENTAGE OF INFLATION AND THE REAL COST OF PRODUCTS IN NIGERIA IS VERY HUGE.WHY IS THE GOVERNOR IS TRAVELLING OVERSEA WOING FOREIGN INVESTOR I DO NOT UNDERSTAND.WHY NOT THE GOVT PUSH THE ECONOMY TO ABSORBE THIS SUPPOSED GOVT BOND, WHICH CAN BE DONE EASILY IN NIGERIA.