Abiodun Adebosin’s Post

#Population rise crumbling economy Nigeria's growing population and struggling economy have created a challenging situation for its citizens. Despite being Africa's largest economy, Nigeria faces significant development obstacles, including: 1. Poverty: A large portion of the population lives below the poverty line, with limited access to basic necessities like healthcare, education, and sanitation. 2. Unemployment: High unemployment rates, especially among young people, contribute to widespread poverty and discontent. 3. Inequality: Disparities in wealth distribution and unequal opportunities exacerbate social and economic disparities. 4. Infrastructure: Inadequate infrastructure, including power, transportation, and housing, hinders economic growth and development. 5. Corruption: Widespread corruption undermines trust in institutions, discourages investment, and diverts resources away from essential public services. 6. Political instability: Political tensions, election disputes, and security concerns create uncertainty and hinder economic progress. 7. Dependence on oil: Nigeria's economy remains heavily reliant on oil exports, making it vulnerable to global market fluctuations. Addressing these challenges requires a comprehensive approach that includes: 1. Economic diversification 2. Investing in education and skills development 3. Infrastructure development 4. Social safety nets and poverty reduction programs 5. Anti-corruption efforts 6. Promoting good governance and political stability 7. Encouraging foreign investment and private sector growth By tackling these issues, Nigeria can unlock its potential and create a more prosperous future for its growing population. Nigeria's growing population and struggling economy have created a challenging situation for its citizens. Despite being Africa's largest economy, Nigeria faces significant development obstacles, including: 1. Poverty: A large portion of the population lives below the poverty line, with limited access to basic necessities like healthcare, education, and sanitation. 2. Unemployment: High unemployment rates, especially among young people, contribute to widespread poverty and discontent. 3. Inequality: Disparities in wealth distribution and unequal opportunities exacerbate social and economic disparities. 4. Infrastructure: Inadequate infrastructure, including power, transportation, and housing, hinders economic growth and development. 5. Corruption: Widespread corruption undermines trust in institutions, discourages investment, and diverts resources away from essential public services. 6. Political instability: Political tensions, election disputes, and security concerns create uncertainty and hinder economic progress. 7. Dependence on oil: Nigeria's economy remains heavily reliant on oil exports, making it vulnerable to global market fluctuations. Addressing these challenges requires a comprehensive approach that includes: 1. Economic diversification

WHY IS NIGERIA STRUGGLING? The graph of average daily income reveals Nigeria’s economic struggles compared to global powers like the USA, China, and Russia. Nigeria’s income stagnated below $1/person/day during the 19th and early 20th centuries, largely due to colonial policies that extracted resources without building local economies. Post-independence growth was modest, with political instability and the 1967–1970 civil war further slowing progress. The 1970s oil boom temporarily increased income, but over-reliance on oil left Nigeria vulnerable to global price changes. Unlike China, which diversified into manufacturing and technology, Nigeria’s failure to develop other sectors led to uneven growth, and income per person remains under $8/day as of 2023. A common misconception is that Nigeria’s oil wealth benefits the population broadly, but most gains are concentrated among elites due to corruption and poor governance. Nigeria’s challenges include inadequate infrastructure, underfunded education, and political corruption, which have hindered long-term development. In contrast, China’s state-led industrialization and population control allowed for rapid income growth, while Nigeria’s fast-growing population has strained its limited resources. Despite these issues, there is optimism. Nigeria’s young population offers potential, especially with recent growth in sectors like fintech. Investment in education, technology, and governance reforms could help Nigeria diversify its economy and improve daily incomes. If governance improves and key sectors are developed, Nigeria has the potential to become a major player in global markets and improve economic outcomes for its population. #Nigeria #YouthEmpowerment #EconomicGrowth #Fintech #InvestmentInEducation #TechInnovation #GovernanceReform #DiverseEconomy #GlobalMarkets #EconomicDevelopment #FutureOfNigeria #SustainableGrowth

As Nigeria moves through the final quarter of 2024, the economic landscape presents significant challenges, most notably rising living costs and unemployment. These issues are driving national discourse, with millions of Nigerians feeling the pressure of inflation, particularly regarding essential goods like food, fuel, and transportation. One of the most pressing issues has been inflation, driven by global economic trends and domestic policy decisions. Among the most controversial of these policies was the removal of fuel subsidies. While this was seen as a necessary step to free up funds for other public investments, it has led to an immediate surge in petrol prices. The resulting cost increase across various sectors has put a strain on household budgets, leaving many struggling to afford basic goods and services. In response to these economic pressures, President Bola Tinubu’s administration has rolled out several programs designed to mitigate the crisis. Despite these efforts, there is skepticism regarding the immediate impact. The unemployment rate, especially among youth, remains high, with estimates suggesting that over 33% of the workforce remains unemployed.   While the government has laid out a framework for economic recovery, many Nigerians continue to express frustration with the slow pace of change. Protests and civil unrest have flared up in various parts of the country, with citizens calling for more immediate relief measures. Fuel prices, in particular, remain a sensitive issue, as they have a cascading effect on nearly every other aspect of daily life, from transportation to food prices. The economic challenges facing Nigeria in 2024 are complex and multifaceted, with rising living costs and unemployment at the forefront. While the government has introduced several programs to address these issues, it will take time for the benefits to materialise. In the meantime, millions of Nigerians continue to endure economic hardship, with many wondering how long they will have to wait for the promised "better days." As the country navigates these turbulent times, much depends on the government's ability to balance short-term relief with long-term economic sustainability. The future remains uncertain, but the resilience of the Nigerian people coupled with continued reforms may yet pave the way for a more stable and prosperous nation.

Nigeria's current economic situation is characterized by several challenges that have significant effects on the masses. Here is an overview of the economic situation, its impact on the populace, the underlying causes, and potential solutions for improving the nation's economic health. Current Economic Situation and Its Effects on the Masses 1. Inflation: High inflation rates have eroded the purchasing power of the average Nigerian. This affects the cost of living, making basic necessities like food, healthcare, and transportation more expensive. 2. Unemploymen: There is a high rate of unemployment, particularly among the youth. This leads to social instability and increased poverty levels. 3. Poverty: A significant portion of the population lives below the poverty line, struggling to meet basic needs. 4. Currency Devaluation: The Naira has experienced significant depreciation against major currencies, which impacts import costs and contributes to inflation. 5. Infrastructure Deficit: Poor infrastructure, including inadequate power supply and dilapidated roads, hampers economic growth and development. Causes of Economic Challenges 1. Overdependence on Oil: Nigeria's economy is heavily reliant on oil exports, making it vulnerable to fluctuations in global oil prices. 2. Corruption: Corruption at various levels of government drains public resources and hinders economic development. 3. Policy Inconsistency: Frequent changes in government policies create an unstable business environment. 4. Poor Governance: Inefficient public administration and lack of transparency undermine economic progress. Alternatives and Solutions for Economic Improvement 1. Diversification: Reducing reliance on oil by promoting other sectors such as agriculture, manufacturing, and services. Encouraging small and medium-sized enterprises (SMEs) can also drive economic diversification 2.Infrastructure Development: Investing in critical infrastructure such as power, transportation, and communication networks to create a conducive environment for business growth. 3. Education and Skills Development: Reforming the education system to align with market needs, and providing vocational training to equip the workforce with relevant skills. 4. Economic Policies: Implementing stable and consistent economic policies that promote investment and economic growth. This includes fiscal policies that manage inflation and support sustainable development. 5.Security:Enhancement: Addressing insecurity through comprehensive strategies that include improving law enforcement, community engagement, and addressing root causes of violence. Nigeria’s economic challenges are multifaceted, impacting the masses through high inflation, unemployment, and poverty. Addressing these issues requires a multi-pronged approach, focusing on economic diversification, anti-corruption, improved governance, infrastructure development.

Is Nigeria's economy headed for a crash in 2024? 📉 Let's dive into the analytics and explore the factors that might contribute to this concerning possibility. 📊 Economic slowdown: With the decline in oil prices and the impact of COVID-19, Nigeria's economy has been grappling with a slowdown. Analysis suggests that if structural reforms aren't implemented, the economy may take a hit in the near future. 💡 Diversification challenges: Nigeria heavily relies on oil revenue, leaving it vulnerable to fluctuations in the global market. Encouraging diversification into other sectors, such as agriculture and manufacturing, could provide a resilient foundation for sustainable economic growth. 🔍 Debt burden: The increasing national debt poses a risk to Nigeria's economic stability. Implementing effective debt management strategies and exploring avenues for revenue generation are imperative to avoid a potential crash. ✨Opinion: Policymakers and stakeholders must prioritize economic reforms and promote innovation and investment. Addressing the challenges outlined above is key to ensuring a stable and prosperous future for Nigeria's economy. Let's work together to navigate these obstacles and unlock the country's true potential. 🌍💪. #economy2024 #nigeria #analytics #data

Navigating Nigeria's Economic Landscape: Challenges and Solutions The economic situation in Nigeria right now has its ups and downs. One of the big challenges is that Nigeria relies heavily on revenue from oil, so when oil prices go up and down, it affects the government's income and can lead to budget deficits. Another problem is the high rate of unemployment, especially among young people. This happens because there's not enough good infrastructure, access to quality education is limited, and sometimes the skills people have don't match what employers are looking for. Inflation is also a big issue in Nigeria. When prices of things keep going up, it means people can't buy as much with their money, and that can make life harder. Things like the value of the currency, problems in the supply chain, and not enough good infrastructure all contribute to inflation. To tackle these problems, there are a few things that can be done. It's important to diversify the economy and not rely so much on oil. Supporting sectors like agriculture, manufacturing, and technology can create more jobs and make the economy stronger. Investing in infrastructure is also key. Better roads, electricity, and access to good education and healthcare can attract more investment, create more jobs, and make people more productive. Encouraging entrepreneurship and helping small and medium-sized businesses can also boost the economy. Giving people the means to start their own businesses, like access to money, business support, and mentorship, can create more jobs and help the economy grow. Lastly, fighting corruption and improving how the government works is really important. If people trust that the government is fair and accountable, it can attract more investment, both from inside and outside the country, and make sure resources are used efficiently."

MANAGING CREDIT RISK IN AN AILING ECONOMY LIKE NIGERIA What is an ailing economy? An ailing economy is an economy that is experiencing significant economic distress and challenges. It is characterized with negative trends across various economic indicators. Some of the economic Indicators of an ailing economy include but not limited to the following: 1. Declining Gross Domestic Product (GDP) The country’s GDP declined from 3.46% in Q4 2023 to 2.98% in Q1 2024. The country experienced recession in 2016 and 2020, primarily due to declining oil prices and the economic impact of the COVID-19 pandemic. The country’s economic growth rate has been slow, averaging around 2-3% annually. 2. High Inflation Rate Nigeria’s inflation has been on the rise, mainly driven by food prices, import dependency, supply chain disruptions, and pressure on the Naira. As of the end of Q2 2024, the inflation rate is 33.9%. 3. Decreasing Consumer Spending Due to the high inflation rate and erosion of purchasing power, the consumer spending of average Nigerians has reduced. Many Nigerians struggle to afford basic necessities. 4. High National Debt The country’s national debt is increasing significantly month on month, with debt servicing consuming a significant portion of the government revenue. The country’s debt as of Q1 2024 stood at ₦121.67 trillion, and the country’s debt rose by ₦24.33 trillion within three months. 5. High Unemployment Rate The unemployment rate in the country has consistently been on the rise. The country’s employment rate increased from 4.2% in Q3 2023 to 5% in Q4 2023. 6. Reduced Industrial Production Industrial production has reduced in Nigeria due to infrastructure deficits, inconsistent power supply, forex availability and a challenging business environment. The country witnessed the exit of some major business leaders like GSK, Procter & Gamble, Sanofi, Bolt Food, etc., in 2023. I know many economists have argued that Nigeria’s economy is not ailing but it is only contracting but the economic indicators are not favourable at all. I would be sharing insights about how to manage Credit Risk in an ailing economy in my next post. Do you agree that Nigeria economy is ailing? Share your thoughts below. #economy #nigeria #creditrisk #riskmanagement #creditriskmanagement

Reviewing Nigeria’s Challenging Economic Crisis in This New Year 2024 Nigeria is grappling with a severe economic crisis driven by global and domestic factors. Here's a brief overview: 1. Plummeting Oil Prices: Global oil price drops due to geopolitical tensions and COVID-19 have caused a significant budget deficit, impacting Nigeria's ability to fund essential services and infrastructure projects. 2. Foreign Exchange Imbalances: Nigeria faces a shortage of dollars and a weakened naira in its foreign exchange market, leading to uncertainty for businesses and investors despite stabilization efforts. 3. Rising Inflation and Cost of Living: Soaring inflation rates have made the cost of living challenging, contributing to increased poverty and social unrest. 4. Unemployment and Underemployment: The economic downturn has resulted in a surge in unemployment, particularly among the youth, exacerbating social and economic inequalities. 5. Infrastructure Deficits: Inadequate infrastructure, including power supply and transportation networks, hampers economic activities and discourages foreign investments. 6. Governance and Corruption: Governance issues and corruption have further complicated Nigeria's economic landscape, undermining policies and discouraging investment. Recovery Strategies: To navigate the crisis, Nigeria must diversify the economy, implement sound fiscal and monetary policies, prioritize infrastructure development, and address corruption through anti-corruption measures. Conclusion: Overcoming economic challenges requires resilience, strategic leadership, and a commitment to implementing effective policies. By fostering diversification, promoting transparent governance, and attracting investments, Nigeria can embark on a path to recovery and build a more sustainable and prosperous future. Full Article: https://lnkd.in/gG9JsTzS #nigerian #NigeriaNews #nigeria #nigerianeconomy #NigerianEconomy #nigerianinflation #nigeriancurrency #nigeriancorruption #anticorruption #nigeriangovernment #nigeriangovernment #nigeriangovernmenthasfailed #nigerianpolitics #nigerianpolicies #nigeriancurrency #inflation #inflation

NIGERIA ECONOMIC CHALLENGES AND SOLUTIONS Nigeria’s economic situation has deteriorated significantly, creating a complex web of challenges that need urgent addressing. The government's decision to increase the minimum wage aims to improve the living standards of its workforce. However, this policy affects only about 10% of government workers, leaving the vast majority of the private sector, especially micro-level enterprises, grappling with the repercussions. To offset the increased wage bill, both private businesses and the government are likely to inflate prices. This chain reaction will lead to a general increase in the cost of living, further straining the already struggling populace. Fuel prices, which significantly impact transportation and the cost of goods, are also expected to rise as the government seeks to boost its revenue. The larger percentage of Nigeria’s workforce comprises private businesses and informal sector workers, who have limited capacity to pass on increased costs to consumers. This sector includes micro, small, and medium-sized enterprises (MSMEs) that form the backbone of the economy. These businesses, already operating on thin margins, face the dual challenge of rising operational costs and limited pricing power. As businesses strive to cut costs, the immediate response will likely be laying off workers, increasing the unemployment rate. Additionally, to remain competitive, many companies might resort to producing inferior goods, adversely affecting product quality and consumer satisfaction. Agriculture, a critical sector in Nigeria’s economy, is not immune to these challenges. Rising costs of inputs, transportation, and labour will lead to increased prices for agricultural produce. This will aggravate the food crisis, pushing more Nigerians into food insecurity and poverty. Addressing Nigeria's economic crisis requires a SINCERE multi-faceted approach involving both short-term relief measures and long-term structural reforms. .By implementing targeted policies to control inflation, supporting MSMEs, investing in agriculture, and fostering economic diversification, the country can create a more resilient economy. Social safety nets and structural reforms are also crucial in ensuring that the benefits of economic growth are widely shared and that the most vulnerable populations are protected during times of economic adjustment. With the right mix of policies and reforms, Nigeria can overcome its current economic difficulties and set the stage for sustainable growth and development.

ECONOMIC UPDATE: END MAY 2024 REPORT Inflation in Nigeria continued to rise, impacting the cost of living and increasing economic pressure on households. The rising inflation rate has been a significant concern for many Nigerians as it erodes purchasing power and affects daily life. Additionally, Nigeria is facing a foreign exchange rate crisis. This situation is creating significant challenges for businesses and individuals who rely on foreign currencies for trade and personal transactions. The shortage of foreign exchange continuously causing volatility in the exchange rates which further complicate the economic landscape. Additionally, the issue of minimum wage remains a critical topic of discussion. With rising inflation and economic instability, there is an increasing need to reassess and potentially adjust the minimum wage to better reflect the current economic realities. The existing minimum wage is not sufficient to meet the basic needs of many Nigerian families, exacerbating the financial strain caused by inflation and economic uncertainty. Key Insights: Inflation Woes: The rising inflation rate is a critical issue that needs immediate attention to protect the economic welfare of Nigerians. Exchange Rate Volatility: The foreign exchange crisis highlights the need for structural reforms and strategic interventions to stabilize the economy. Minimum Wage Concerns: Addressing the adequacy of the minimum wage is crucial to ensure that workers can sustain themselves and their families in the face of economic pressures. Call to Action: Government Response: Urgent measures are needed to address the rising inflation and stabilize the foreign exchange market. Economic Transparency: Improved reporting and transparency in economic data can help in better managing and anticipating economic challenges. Minimum Wage Adjustment: Revisiting and adjusting the minimum wage to reflect current economic conditions is essential for supporting Nigerian workers. Public Awareness: Increased public awareness and understanding of these economic indicators will foster a more informed citizenry and prompt collective action.