In recent times in Nigeria, there has been a big change in the price of crude oil and a rapid increase in the exchange rate. This has given birth to many economic situations which normally can be handled but has gone out of hand and leads to deterioration and total shortage of the national foreign exchange reserve. Let's start by quickly understanding what the economic downturn is. Economic recession can be defined as a period in which gross domestic product (GDP), the amount that a country produces and sells, declines for at least two consecutive financial quarters. Simply put, a country's finances do not grow, but decline. The National Bureau of Economic Research has defined a recession as "a dramatic decline in widespread economic activity in the economy, lasting more than a few months, generally visible in domestic product (GDP), real income, employment, industrial production and wholesale retail sales. There are various effects of the economic recession in Nigeria which we will discuss shortly
INFLATION
For every fall in the economy, it has always led to a creeping income and with this passive income, each producer to maintain the level of their products decides to increase the price of their products or services, and this always has a ripple effect in the market as everyone increases their own prices to maintain the standard and avoid falling into the chain in the business environment. High inflation, a general increase in the price of goods and services resulting in low purchasing power.
• MASSIVE UNEMPLOYMENT RATE
Another effect of this phenomenon called economic recession is that the unemployment rate in Nigeria is increasing, many people have been left out of work, some have been made redundant from their jobs and some businesses have collapsed during the difficult period of recession in the economy. While some are still making a lot of profit currently due to the increase in dollar trading for those going into dollar business, for some it is also a colossal mistake as it decreases the value of their money.
• DROP IN THE PRICE OF CRUDE OIL
One of the visible effects that we still see when Nigeria emerges from an economic recession has been the collapse in oil prices. The rate at which a barrel of oil is processed at the sell rate has declined. And it is no longer new that the main channel of income in Nigeria is crude oil and as soon as there is an itch or a drop in the price of this product, it will surely have a ripple effect on the national economy. In every sector and environment as well. Thus, one of the effects of the economic recessions left in Nigeria is the fall in the price of crude oil, which is one of the reasons why the standard of living has fallen and the scarcity of this commodity in the country. Most of the businesses of the Nigerian people use crude oil products for their daily activities and as there is an increase in the price, the rate of the services increases and so on.
· LOW STANDARD OF LIVING
Another factor that can be noted in this period is that the standard of living especially in the house of the masses is always reduced to the minimum necessary as we can see some families who can afford 3 square meals cannot, not having the means for even 2, some families who have enough to share can no longer share with those who need it. Lots of spending restrictions.
