Nigeria has officially entered second Recession in 5 years.
According to gross domestic product numbers that the National Bureau of Statistics released on Saturday, Nigeria records contraction of 3.62 percent for the third quarter of 2020
Recession happens when a country’s gross domestic product or GDP has a negative growth for 2 consecutive quarters of the year.
Gross Domestic Product is the total money value or market value of all the finished goods and services that are produced within the country to sell to other countries.
As Nigeria is in recession, it means all the value of money that other countries will pay for our products will also reduce, leading to huge losses to Nigerian manufacturers and producers.
For businesses, it will definitely affect the revenues they will make. Cost of doing business will also increase, leading to increase in sales price, which in return may lead to low sales.
Government will also have to review on-going projects, reduce the number of awarded contracts which may lead to people losing their jobs, because companies too may cut available job positions in order to stay in business.