Nigeria economic struggles
We are in a critical period of history in Nigeria, we are in between the biggest economic challenge. It is amazing that we either know and do not want to pay attention or we don’t know at all. We know that we have issues but COVID-19 has open the sore more. A lot of businesses are dying and citizens losing their jobs. The hospitals are over flowing with dead bodies that government had to ask that all dead bodies in the mogul be taken and buried to create space. Most children are out of school except for the transition classes. It is a speculation that many of the children taking exams will fail this year. It is becoming very hard to be optimistic about the country. It is time to stand to salvage this country.
Nigeria has over 195 million people in it according to World bank, we have over 42.5% of this population as young people, over 21 million of the working population are unemployed. Nigeria is the poverty capital of the world with more than 60% of the Nigerian population poor. The economy has contracted by 6.1% in Q2 of 2020, we anticipate a 8% contraction by Q3, we are in a recession, I hope this is no news to you. Nigeria has the largest number of out school children before COVID-19, we bet that this number will soar as we anticipate that all those who lost their jobs if they cannot get another will withdraw their children from school, survival (food and shelter) becomes priority. What future does the poor have? We are all stalked here and drowning. We are not a nay sayer, there is a need for sacrifice by Nigerian leaders but this sacrifice is not feasible. We may be seeing a soar in maternal death, child malnutrition and crime rate. We continue to increase security budget without investment in the future or social welfare of our people or providing enabling environment for business.
Today, transportation has risen by 50% because of increase in fuel and reduction in number of passengers each vehicle can carry because of COVID-19. The cost of spaghetti at #100 4 years ago now #220. The cost of a paint bucket of garri has left #450 to #1200. Rice now sell at #800 per derica tin. Landlords are increasing the house rent by 10% to 15% in Lagos. Yam you bought #1000 last year is now #1500. The cost of internet is stable but the period of usage has reduced because office reporting, mails, download and upload of task and online meeting must be done over the internet. Nigeria hold the most expensive internet data rate in the world. There is sure need for a rethink.
The metrics of inflation at over 12% and valuation of dollars at #382 plus COVID-19 can crash a business . Nigerian businesses are trying hard at this time to stay afloat with little or without any support from the government. It has taken more than 3 months to get a CAC certification for us a start-up, that how hard point of entry is. How do we get investment or aid without legal registration. The bank will not open a bank account for you without registration. The cost of dollars have affected all purchase online from ads to cloud facility to hosting to cost of getting a job done. The cost of operating a startup has increased. Entrepreneurs are bleeding, yet government is using IGR, levies, taxation and policy to brake their spine. We killed a whole sector of thriving bike hailing startups for some fuzzy reasons.
Do you want to create wealth and reduce unemployment then support businesses and entrepreneurs.Nigeria is in desperate need of leaders with a heart for growth and development. We are at a point were if we will survive, leaders must be willing to sacrifice their own comfort for posterity. We are in need of a leader with strong vision, we know that negotiation for 2023 has started, Nigerians must wake up from stumber and ask for good governance. We must either fight for freedom from oppression or go to polls to change our stories. This is not a time for frolicking or politicking or tribal bigotry or religious fanaticism. It is time to ACT FAST!