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We’d tell you to forget about marriage and focus on yourself in this messy economy, but you people have carried love on your head like gala sellers in traffic.
Did you see the number of couples that got engaged in December?
Just like our dear president did, we suggest you also hit the ground running. Take your partner’s hand and run away from all unnecessary spending into your nearest registry. You’ll need to pick up some important documents and two witnesses on the way, but it’s a lot better than paying through your teeth to entertain your village people, including your mother’s friend who once watched her beat shege out of you.
“Cut your coat according to your clothes. You don’t have to do all the fancy, big things.” – Lauretta
With the way the costs of things are flying through the roof every second, you might end up with a doll’s vest. But the love of your life is all you need to have a great time at your wedding, right? Take a long, hard look at your account balance and plan with what you have there.
“Don’t go for the popular, do something that’s uniquely you.” – Ope
Instead of going for what everyone else is doing, like buying a dress worth millions or renting out the biggest hall, you can have the wedding in your father’s backyard, wear something from your closet. The most important thing, though, is that your wedding feels very much like you.
“Use the people you know. Do something small and intimate.” – Ope
Not only does a small, intimate wedding save money, but it also ensures your special day is free of drama. No one wins if, during the reception, your best man plays videos of you catching ass. Or your ex-girlfriend plants seeds of doubt in your bride’s head. You might think we’re lying, but The Wedding Party’s Dozie knows what we’re talking about.
“Invite the people you’re actually friends with.” – Lauretta
If that includes the akara seller at your junction and your misunderstood boss, so be it. Just make sure the people you’re sharing your day with are worth it and won’t do anything that might cause you grief on your special day.
“If you’re doing your wedding at the end of the year, it’s going to be more expensive.” – Ope
Once Zenith Bank puts up Christmas decorations and people start singing off-key about Jingle Bells, just know the price of everything has tripled, and your wedding will cost a whole lot more. Pick a good time for your wedding. It could be the beginning or middle of the year when there isn’t a holiday fighting with the economy to see who can take you out first.
“Make trade-offs and spend the most on what matters to you and your partner.” – Ope
Image source: chopscentral via X
It’s your special day, so it only makes sense you spend on things that’ll make you and your partner happy, even if that means splurging on decoration or having a small chop platter with only puff puff and mosa.
It’s crystal clear we have a problem in Nigeria. Inflation has reached 28.92% — the highest in 27 years — and things are going from bad to worse.
Since all of us can’t just japa and leave this country empty, we might as well figure out how to live through it. I spoke to some millennials, and they shared the hacks they’re holding onto in these trying times.
Prioritise essential expenses
If you know you typically finish a bag of rice in a month, it’s better to buy that bag when you have money rather than buy it small small because that rice can double in price in two days.
I like to also buy things in twos or threes. At least, I get to delay buying the same thing at an (inevitably) higher price for a little while. I can stay broke happily, knowing I already have most of what I need till the next paycheck comes.
— Kelvin
Take loans if you have to
Gathering money over a couple of months to make a big purchase doesn’t work in this economy again. Before you finish saving the money, the item has doubled in price.
So, if it’s an item you absolutely can’t do without, consider taking a loan to buy it. I do this regularly and advise anyone else to do the same. It works even better when you can get informal loans with little or no interest. But pay back your loans o. Let’s not be unfortunate.
— Opeyemi
Comfort is good, but survival is better
This might sound like advice to reduce your quality of life, but if you don’t want that quality of life to reduce by force, you need to start making sensible cuts.
I used to run my generator all day whenever NEPA did their thing, but now, I do most of my work within the three hours that my generator is turned on daily, so I can be on my laptop while it’s connected to electricity. That way, my battery is still charged when the generator is turned off, and I can still squeeze out a couple of hours before the battery dies.
Think about what you can cut sensibly. Do you need to take an Uber for the entire trip, or can you take public transportation to a point first?
— Peace
Nobody will beat you if you haggle
Our mothers knew what they were doing when they priced things at the market. I used to be ashamed to haggle, but now, I have to do it.
Pro tip: Start the haggling process by dividing the initial price into three. For instance, if the seller says something costs ₦1k, start pricing from ₦300 or ₦350. You’d be surprised how much you save when you and the seller eventually settle on a price.
— Christy
Avoid billing like your life depends on it
I now do a thing where I refuse to open or respond to WhatsApp messages until the sender reveals why they’re messaging me.
Messages with only “Hi” or “Hello” go unanswered unless you follow it up with “My name is XYZ, and I’m reaching out for ABC reasons”. For not-too-close family members, I make sure to start conversations with my own problems. Everywhere is hard, and this is not the time to make any unnecessary expenses.
I’m big on budgeting, but I recently noticed that my budgets weren’t adding up. For instance, I could budget ₦5k for gas and suddenly hear that they’ve increased the price.
I still budget, though. If not for anything, it helps me track my expenses and have something to look at when I start wondering where all my money disappeared to. So, have a budget but still have it at the back of your mind that things can change. At least, if it doesn’t work out, you know it’s Nigeria, not you making poor financial decisions.
— Ola
Make money
It’s easier said than done, but at the end of the day, money is what will still save you from totally erasing your quality of life due to inflation.
I’m constantly on the lookout for side gigs and better job opportunities to increase my income. If you like, be feeling guilty or thinking you want to be loyal to any company. Even your oga is looking for a better-paying job.
On January 12, 2023, Ajuri Ngalale, Tinubu’s Special Adviser on Media and Publicity, announced the appointment of 11 new directors for the Federal Ministry of Art, Culture and the Creative Economy (FMACCE). These are their names and new roles.
Tola Akerele — Director-General, National Theatre
Tola Akerele has built successful businesses that have contributed to contemporary African art. She founded Bogobiri House, an Afrocentric and artistic hotel with an art gallery, restaurant and bar. Alongside being the curator at Soto Gallery, Tola also owns an interior design studio called iDesign by Tola Akelere. With a solid resume in arts, culture and creativity, it’s not hard to see why the direction of the national theatre has been entrusted with her.
Image source: Businessday NG
Husseini Shaibu — Director-General, National Films and Censors Board
The new director of the National Films and Censors Board is Husseini Shaibu, the deputy national director of the National Troupe of Nigeria, an editor at The Guardian newspaper and a film critic. He’s also been a member of the jury board of the Africa Movie Academy Awards (AMAA) and the Nigerian Oscar Selection Committee.
Image source: Starconnect Media
Obi Asika — Director-General, National Council for Arts and Culture
Anyone who’s familiar with the Nigerian music industry must know Obi Asika is a major contributor to the sector. Not only did his Storm Records platform OG Afrobeats artists like Sasha P, Naeto C, Jazzman Olofin and Yung 6ix, becoming one of Nigeria’s biggest labels to date, but Obi’s ten-episode Afrobeats documentary, Journey of the Beats (2022) on Showmax, also visualised the genre’s history and global movement. He served as a Senior Special Assistant to former President Goodluck Jonathan and was once part of the African Advisory Committee of the Smithsonian’s National Museum of African Art in the U.S.
Image source: TheWill Downtown
Aisha Adamu Augie — Director-General, Centre for Black and African Arts and Culture
Aisha Adamu Augie is an Abuja-based award-winning photographer, filmmaker and mixed media artist. She won the Sisterhood Award for Photographer of the Year and the British Council’s “Through My Eyes” competition in 2014. The same year, Aisha hosted “Alternative Evil”, her first solo photography exhibition. When she’s not hosting the podcast, “I Love Your Work with Aisha Augie”, she’s performing governmental roles. She was a Special Adviser to Zainab Shamsuna Ahmed, the former Minister of Finance, Budget and National Planning, from 2019 to 2023.
Instagram: @aishaak49
Ekpolador-Ebi Koinyan — Chief Conservator, National War Museum
The National War Museum is the only museum that showcases military history in West Africa, and Ekpolador-Ebi Koinyan is its new chief conservator. Before his appointment, he headed the Bayelsa State Government’s e-Governance Project, and he’s a senior partner at Smart Alliance Consulting, examining the operations of professional service firms in emerging markets.
X.com: @ekpolador_ebi
Ahmed Sodangi — Director-General, National Gallery of Art
Ahmed Sodangi is an experienced expert in the import and export industry, and a project officer at the Bank of Industry Ltd. Although he’s an unfamiliar name, we’re investing a little faith in this president’s appointee.
Image source: LinkedIn
Chaliya Shagaya — Director-General, National Institute of Archeology and Museum Studies
Chaliya Shagaya is an entrepreneur, fashion consultant and ex-mode who’s consulted for respected designers like Deola Sagoe and Korto Momolu. Ms Shayaga served as the former head of new media at Nigerian Maritime Administration and Safety Agency (NIMASA) and head of government relations at the Nigerian Exchange Ltd. (NGX). We look forward to her contribution to preserving our artefacts and museums — and possibly, giving us our Afrobeats Museum?
Image source: THISDAYLIVE
Khaltume Bulama Gana — Artistic Director, National Troupe of Nigeria
Kaltume Bulama Gana is the curator of the National Gallery of Art, an artist who’s showcased her work at more than 45 group and solo exhibitions. She was an assistant director in the History and Culture Bureau in 1987, and before that, she was a TV presenter at Kano State Television from 1985 to 1986. She runs Herwa Heart of Art Initiative, an NGO focused on educating children, including young girls and women affected by Boko Haram’s insurgency. We hope she excels in her new role.
Image source: OpenBU
Biodun Ajiboye — Director-General, National Institute for Cultural Orientation
Biodun Ajiboye has worked in media, publicity and campaigns for the All Progressive Congress (APC) political party and in the Nigerian telecommunication industry. He owned the now defunct Nigerian Telecoms News and the Nigerian Telecoms Awards.
Image source: The Guardian Nigeria
Ali Nuhu — Managing Director, Nigerian Film Corporation
Ali Nuhu is among the most decorated actors in the Hausa film industry. With over 22 years in the film industry, he’s not a new face to lovers of Kannywood and Nollywood. If you want a problem solved, call on those with firsthand experience in it. We guess that’s what President Tinubu did with this appointment.
Image source: Daily Trust
Ramatu Abonbo Mohammed — Director-General, National Commission for Museums and Monuments
Ramatu Mohammed Abonbo was Niger State’s former commissioner of commerce, industry and investment. Before her involvement in politics, Ramatu was Chief Marketing Executive at MicroAccess Ltd., a pioneer information and communication firm through which Nigeria’s first national website and the National Hospital’s first website were built. She was also the director of Hamble Group, London. Although her CV isn’t related, we look forward to see how her past successes in executive leadership transfers to her new role.
In May 2023, Tinubu’s Policy Advisory Council developed an economic report detailing his growth plan for Nigeria. We wrote about it here. If you feel up for it, take this quiz to test your knowledge of Nigeria’s economy.
With inflation biting hard at Nigerians, more citizens are saying painful goodbyes to some household expenses. Even with gainful employment and thriving businesses, the daily needs of these subjects are outgrowing their income bands at an alarming rate.
Johnson* | 33 | Digital Strategist | Lagos
Salary: ₦300k
I calculate every kobo before spending these days. I focus on my needs, and I’ll say foodstuff takes the hit.
I can only afford half of what I used to stock in the house in 2022. I can’t remember the last time I bought clothes. I’m constantly checking my account balance to see if it will last till the next payday. Not a good way to live at all.
Janet* | 39 | Academician | Ado-Ekiti
Salary: ₦180K
I’m not doing badly with my finances at the moment, but I really wish it was better. Living in Ado-Ekiti has been really helpful. It has curbed my frequency at clubs and parties and my impulse buying rate, unlike when I was in Lagos.
In 2021, I owned a car, could comfortably go on vacations and even jump on domestic flights . I sold my car in 2022 in high hopes of relocating overseas. But I’m using part of that money to further my studies in Nigeria. And I can’t even think of getting a new car because things are so expensive. I have to pause one need for the other every time. It’s so sad!
Kareem*| 51 | Businessman | Osogbo
Income range: ₦15m – ₦20m per annum
Things have been challenging. I’m sure my kids know something is wrong even though they don’t talk. My last born is still seeking admission to a government school. It was hard to tell her she won’t be attending a private university like her elder siblings. In fact, I couldn’t break the news to her. It was my wife that told her, and surprisingly, she took the news well. I hope she doesn’t hate me if strikes delay her. It was a painful but necessary decision. Business has slowed, and it will be a financial trap if I insist on putting her in a private university.
Efosa* | 31 | Businessman | Location: Lagos
Income range : ₦20 – ₦30m per annum
My income and lifestyle have been consistent, so I can’t complain. I can afford everything I want — well, except for property in Banana Island. The whole fuel scarcity situation won’t have a lot of bearing on my finances. I’ll likely commute less to conserve fuel. Besides that, everything else will be okay. I’m quite prudent with my spending, so no significant or unmanageable financial exposures for me. I’m also considering getting a bicycle for short runs, like to the nearby supermarket.
Davina* | Age: 32 | Project Manager | Lagos
Salary: ₦350k
Between 2021 and 2022, I could comfortably blow ₦100k in a month and not feel it. But if I try it now, I’ll call a Town Hall meeting; EFCC should even arrest me.
For the better part of the last two years, I ate out almost every day. But now, I’ve had to cut down on eating out. My daily spend used to be ₦8k per day and ₦5k for the weekend. I’ve reduced it to ₦30k per week. I’m struggling to maintain the hard limit sha. Getting paid in dollars is the goal. I sometimes pity low-income earners because there’s no way they won’t be neck-deep in loan debts to survive in this economy.
Korede* | Age: 32 | Businesswoman | Abuja
Income range: ₦1.7m per annum
It hasn’t been easy this year. In fact, I’m always scared of going out because of the expenses involved.
I find myself drawing a detailed budget for everything. Before, I’d go to the market once a week, but I’ve had to change that to once a month. The prices for food items have drastically changed, and I can’t afford to spend as much as I used to on food. It’s also affecting my business. I used to import nothing less than 50kg of goods before, but now, I can hardly do 20 kg due to the increase in dollar rate. I pray it gets better because there are places I’d love to go but can’t because of this crazy hike in fuel prices.
Kunmi* | 28 | Journalist | Lagos
Salary: ₦180k
I don’t go out as much as I’d like to anymore. The fear of taxi fares is the beginning of wisdom. I also used to buy and spend a lot more on food than I currently do. In 2021/2022, I was spending an average of ₦30k – ₦35k ordering food in a month. That has significantly reduced to about ₦15k monthly in 2023. I just stick to whatever is available at home. I’m anxious about how things might still change for the worst.
I’m considering learning how to ride a bicycle or scooter. I also know for sure that outings to the island will be less frequent. It’ll make more sense to go out with a group so we can split the fare. In short, just stay at home.
We all know Bola Ahmed Tinubu (BAT) loves to put on a show — doesn’t matter if he’s riding a gym bike in London or taking fire jpegs to prove he’s not sick.
Now, barely two weeks after he released his manifesto, the All Progressives Congress (APC) presidential candidate arranged a glossy town hall meeting with the moneybags of the private sector to press home his proposed economic policies. We’re talking about billionaires like Aliko Dangote, Jim Ovia, Tony Elumelu, Aigboje Aig-Imoukhuede, and Herbert Wigwe. If the Avengers were a Nigerian billionaire group, they all showed up for the BAT.
And since there’s nothing like a Lagos party, we recapped the most interesting things from Tinubu’s business summit.
[Image source: Channels Television]
Tinubu makes a lot of promises, as usual
As always, Tinubu made the usual promises concerning some of his plans for Nigerians including:
Double-digit GDP growth.
The resurrection of industrial policy.
Promotion of the agbado agricultural industry.
The evergreen promise of 24/7 power supply.
CBN giving affordable rates for credit.
Another evergreen promise of better roads and public facilities.
Enlisting more Nigerians into the armed forces.
Tinubu won’t stop talking about his master plan
Tinubu reminded everyone about his background as a former Lagos State governor and how he made the state what it is today with his masterplan. He said, “My team and I developed a blueprint, a masterplan, for Lagos. I can say that plan has been largely successful. We turned this state into a safer, more prosperous place where people can go about any legitimate vocation or venture regardless of their ethnicity, religion, region, or prior social station.”
Some lighthearted violence also got the spotlight at the business summit when Tinubu’s running mate, Kashim Shettima, took the mic. He targeted two of his party’s biggest opponents.
Remember him?
Atiku Abubakar
Shettima first went after the academic qualification of the Peoples Democratic Party (PDP) candidate, Atiku Abubakar. He mocked the former vice-president for getting a “wole wole (sanitary inspector)” certificate from the Kano School of Hygiene where he graduated with a diploma in 1967.
For his final shot at Atiku, Shettima said, “The ability to sell bottled water does not make one an expert on the economy. Atiku Abubakar is not Abraham Lincoln, he’s more of a Raila Odinga. Next year, we are going to permanently retire the political tourist back to Dubai.”
Shettima signed the peace accord with other presidential candidates in September, but he didn’t show up to the business summit to preach peace.
Peter Obi
The presidential candidate of the Labour Party (LP), Peter Obi, was also in Shettima’s firing line. Shettima rated his tenure as Anambra State governor a “mediocre performance” and cast doubts on his leadership skills.
“Leadership goes beyond glamourising poverty. We don’t glamourise poverty, we fight poverty. I won’t tell you that I have two pairs of shoes or I have a single watch. Leadership goes beyond dubious statistics or basking in a mediocre performance as the governor of Anambra State,” he said.
Sanwo-Olu won’t stop kissing Tinubu’s feet
The Lagos State governor, Babajide Sanwo-Olu, owes his position to Tinubu, so it’s not a surprise that he’s been all over his presidential campaign. In his tribute to Tinubu at the summit, the governor reminded everyone about his godfather’s achievements from ancient days.
Sanwo-Olu promised everyone that Tinubu will use his business acumen to help the private sector and everyone make more money. But we all know he’s just watching out for his own interests.
[Image source: Nigeria Info]
Everyone is shockedIyin Aboyeji is a BAT man
It was surprising for many Nigerians on Twitter to see the founder of Future Africa, Iyin Aboyeji, making a case for Tinubu’s tech policy at the summit, especially since he criticised the APC in 2021.
Here’s what some Nigerians had to say of his presentation:
I can understand Tinubu consulting leaders of the Nigerian tech ecosystem to get their input in order to inform his policy. But to have one of them present the policy seems out of place.
Iyin has already told you people that your "noise" doesn't matter. He's the productive one. He's the one who is putting your country on the map. He has no time for your "naive idealisms". He's the Nigerian "Tony Stark".
Tech-bro politics 101: He's a builder, you're a moaner.
On the 4th of June, 2021, the Nigerian government banned Nigerians from using Twitter. This came after Twitter deleted a threatening tweet posted by the Nigerian president. The implications of the Twitter ban in Nigeria is far reaching and would affect different segments of the Nigerian demographic in different ways.
Exactly 24 hours ago, the government of Nigeria announced the suspension of @Twitter operations in Nigeria. Since then, the country has lost N2,177,089,051 ($6,014,390) based on the Cost of Shutdown Tool.
— Paradigm Initiative (PIN) (@ParadigmHQ) June 5, 2021
We decided to speak to a few business owners who run their business via social media, and specifically Twitter, about how this ban is affecting their business already or will affect their business and here’s what they said:
Susan – Thrift Clothes Business
The ban has already affected me even thought it just came into effect. I didn’t know about the ban until this morning. I was off Twitter all of yesterday. I was trying to log into my business Twitter all to no avail. At first, I thought Twitter was down or that they had suspended my account. When I mentioned it to a friend, they told me what had happened and helped me download VPN. Apparently, in the short time I was trying to log in to Twitter, a customer had sent me several DMs. Luckily, they understood why I wasn’t responding on time. I can’t imagine a world where I have to constantly use VPN before I access Twitter. I can already see it draining my battery all the time, which is annoying. I use Instagram too, but I’ve realised that a lot of my customers come from Twitter, so it’s really worrying to me.
Olumide – PR Agent
I own a music PR agency and I get most of my clients and traction from Twitter. I’m currently using VPN because I have a few deals to close. Imagine there was no VPN, just imagine. The country is a ticking time bomb, because imagine the amount I would’ve lost if there was no VPN. When will someone not carry gun?
Liz – Fashion Business
I haven’t fully processed what the Twitter ban means for my business, it’s really a lot to be honest. Apart from the free exposure from likes and RTs, Twitter really helped me gain customers when I started out my fashion business. I feel like I’ve already lost a sizeable portion of potential customers thanks to this ban. It’s going to be a lot harder to get customers or new orders if no one can even access the platform that helped us gain them in the first place. A lot of small businesses rely heavily on Twitter, and I guess the biggest thing is for us to restrategise and make use of the other platforms to reach new customers.
Sola – Food Business
The entire climate of the country has affected my business, not even just the Twitter ban. If my people don’t have money or are thinking about how to survive in this harsh, wicked government, is it snacks that they’ll be thinking about? The Twitter ban just made it worse. On weekends, we sell out. We have lots of orders. I have never seen a dry day like today, since maybe October. It’s tiring.
Ewa – Jewelry Business
I’ve tried not to think about it because, Twitter gave my business visibility. I first started on Instagram, ran ads multiple times but I got only one customer from there. But as soon as I started on Twitter, I’ve gotten more customers, plus I’m able to reach a lot more timelines just because of retweets and likes. This Twitter ban is just going to affect it all; if I’m not able to tweet about my business, how am I going to get customers ? People don’t even trust Instagram vendors anymore.
Onome – Social Media Manager & Content Creator
The Twitter ban is very upsetting because it’s affecting what my business is now. I am a content creator and a social media manager which means a lot of work is on Twitter and managing social media. I work for brands, manage their Twitter and Instagram. After the ban was announced, the office said to stop posting for Twitter because they didn’t want the brand to be caught disobeying Nigeria’s “law”. If this Twitter ban in Nigeria continues, I forsee social media managers losing their jobs. Imagine being a Twitter influencer without Twitter; of course you will go out of business because a major source of livelihood has been cut off. I just started having customers on Twitter after 4 years of putting in work. Now, what happens to it? There’s a lot of anxiety. Twitter is what helps you grow, where the interactions take place. Even people who follow you on Instagram find you on Twitter first. Once, someone told me she patronised me because she searched my handle on Twitter and found no bad reviews. If we are being honest, no other website can be like Twitter.
Divine – Breakfast Business
I graduated 2 years ago and after a year of unemployment, I started my breakfast business which functions 100% online. I started using Twitter to market my business and make sales. Twitter alone brought in over 65% of my profit which I’ve used to fend for myself and family. I have met a lot of investors who are ready to enlarge my business so as to create more employment for other people too. This Twitter ban in Nigeria would not only destroy my source of livelihood but also cut me off from potential investors. I am a responsible Nigerian graduate who is only trying to survive.
Citizen is a column that explains how the government’s policies fucks citizens and how we can unfuck ourselves.
Recession, palliative, ad-hoc committee, ultra-modern, bistro — you can’t claim to be a Nigerian if you’ve never heard these words. They are so popular, we wrote about them.
Speaking of recession, on Saturday, November 22nd, 2020, the Nigerian Bureau of Statistics reported that Nigeria’s GDP (Gross Domestic Product) reduced by 3.62% from September to October 2020 (Q3 2020). The economy had reduced by 6.10% from April to June 2020 (in Q2 2020), all of which led to the report that Nigeria is now in an economic recession.
A recession is a decline in economic activity for a few months. Usually, when many businesses in a country lose money instead of make profits for six months, economists declare that the country is in a recession. In Nigeria’s case, our trade, financial and manufacturing activity have reduced in six months — which means that the country is officially in a recession.
It is usually rare for a country’s economy to decline for two or more consecutive quarters, or over six months, but since 1960, Nigeria has entered into recessions only four times — in 1983, 1987, 2016 and 2020.
The curious thing, though, is that most of these recessions are usually linked to the low oil prices. Because 90% of Nigeria’s foreign revenue is gotten from oil, 80% of our export is crude oil and over 50% of all the money the federal government makes is also gotten from oil, any time the price of oil reduces, it badly affects Nigeria’s economy.
In 2020, COVID-19 has affected economic activity badly. For instance, China, Nigeria’s biggest oil importer, implemented large scale lockdowns in January, 2020. This meant that Chinese factories were not working, neither was any travel or economic activity that seriously required crude oil happening in China. Meaning that China had no need to import Nigeria’s crude oil.
Because of the low demand of crude oil from China and many other countries, oil prices fell to $28, and even less — some of the lowest oil prices in history. All of which meant that Nigeria’s federal government had less revenue to balance the budget and pay for critical development activities.
Worse, because oil sales are conducted in dollars, low oil prices also meant that Nigeria could not generate enough foreign currency, which ended up affecting Nigerian business people who wanted to import goods from other countries. This meant a higher cost of importing goods into Nigeria, which led to a higher price of goods or “inflation“.
Again, it is important to note that this is Nigeria’s economic fourth recession since 1960, most of which is usually inextricably tied, one way or the other, to globally low oil prices.
In 1980, global oil prices collapsed as it has in 2020, and because the Nigerian government was spending lavishly in the 1970s, the oil price fall of the 1980s affected the government’s revenues.
With the fall in oil price, Nigeria quickly entered into a recession. The government was making little money and there was no foreign exchange to pay for Nigeria’s imports. All of this led to an economic crisis, which included high unemployment, the government’s inability to pay its debts, a foreign exchange shortage, and so on.
In 1986, General Ibrahim Babangida’s government decided to reject an IMF (International Monetary Fund) loan proposal. Instead, he adopted a modified variant of the transitional Structural Adjustment Programme (SAP), which was designed and implemented by Nigerians. The World Bank also supported the policy with a $450 million trade and export diversification loan.
The objectives of this modified Structural Adjustment Programme (SAP) was to:
Restructure and diversify the productive base of Nigeria’s economy so as to reduce dependency on the oil sector;
Reduce the amount Nigeria paid for imports while increasing how much we exported;
Reduce inflation in the country i.e the high cost of prices of goods.
The GDP growth objectives for 1987 was set at 3-4%, while inflation was supposed to reduce to 9%.
The government decided to go about this modified Structural Adjustment Programme by:
Adopting measures to boost domestic production of goods;
Setting up of a “Second-Tier Foreign Exchange Market” where foreign exchange would be traded without government control;
Eliminating price control and commodity boards;
Reducing control of interest rates;
Reducing public sector enterprises and reducing public sector workers.
The government also introduced “relief packages” like the Urban Mass Transit Programme of 1988, the People’s and Community Banks of 1989, the Directorate of Food, Road and Rural Infrastructure (DFRRI), the Better Life for Rural Dwellers Programme of 1989, amongst others.
However, as of 1995, the modified Structural Adjustment Programme showed mixed results. The programme was shown to have brought few tangible results to the people, and the poor implementation and execution of the programme meant that it did not achieve what it set out to achieve.
Nigeria’s 2020 recession
Nigeria’s 2020 recession is not unconnected from the impact of the COVID-19 lockdowns that have reduced economic activity for a considerable part of the year.
Several countries are currently facing economic recessions because of COVID-19 and the consequent lockdowns.
However, one way to reduce Nigeria’s exposure to recession is to reduce the overdependence on crude oil sales, which currently accounts for over 65% of our revenue and over 90% of our foreign exchange earnings. The Structural Adjustment Programme of the 1980s set out to achieve this independence from oil sales and “structurally adjust” the economy of the country, but it achieved mixed results, at best.
Going forward, Nigeria must diversify its economy from crude oil sales. By growing other sectors, especially agriculture, information technology, maritime, transportation, aviation, solid minerals and entertainment, Nigeria can withstand economic shocks better.
We hope you’ve learned a thing or two about how to unfuck yourself when the Nigerian government moves mad. Check back every weekday for more Zikoko Citizen explainers.
On Monday, the Nigerian Bureau of Statistics released GDP figures for Q2 2020 (April – June), and the outcomes were not so surprising. Gross Domestic Product (GDP) decreased by 6.10% from the exact same period last year, ending a 3-year trend of low but positive economic growth recorded since the 2016/17 recession (remember that dark time when son of men would rather eat rice with dollars, not stew?).
Fat Kids Are Shrinking
The thing is, every fat kid in the class is shrinking. The US economy shrank by 32.9% April to June 2020, the worst on record since 1945. The UK’s trade heavy economy also deflated 20.4% within the same period, and South Africa’s reserve bank sees a 32.6% economic contraction in the 2nd quarter.
But even though Nigeria was already the lean Kenyan (or Nigerian) marathoner in the class, the coronavirus lockdowns, particularly in April and May, is doing everyone dirty. Economies are not generally forecast to get back on their full feet until well into 2021.
Don’t Rush, Slow Touch, Something On Something
You probably did one of the online challenges to keep yourself sane during the lockdown. Well, thanks to you and many other benevolent Nigerians, Telecommunications (within the ICT sector), grew by 18.1% compared to 9.7% in the first three months of 2020. Meaning that the telecoms guys were cashing out dirty from our online challenges, video calls and long distance calls to loved ones during the lockdown.
Telecoms to the rescue again.
Goodness knows how bad the contraction would have been without the out-performance of Telecoms. https://t.co/7CvPbnQJ1E
The ICT sector itself contributed N15.9 trillion to the economy, making it the only sector alongside financial services, crop production and ‘others’ to grow within within the quarter.
Again, double your hustle, triple it if you wish. But don’t expect miracles on economic recovery until well into 2021.
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4. Someone should give Nigerians World Cup for their patience and resilience.
Dollar at N500 Sardine at N300 Pure water at N250 And we Nigerians haven't gone to war. You should congratulate us for our maturity https://t.co/rnHMsiRBwh
