Abstract: This research investigates the causes and effects of the recent economic recession on the Nigerian economy. Corruption, mismanagement of funds by past administration, vandalization of oil pipeline, Boko Haram insurgency, oil price shocks, delay in approving national budget are the main causes of the recent economic recession in Nigeria. The effect of recession in an economy result to a fall in aggregate demand, decrease in consumption, increase in unemployment, inflation and in general high cost of living. The study employed ordinary least square method in the analysis of this research and the result from findings shows the rate of inflation has negative effects on the Nigerian economy as it was evidenced from the result and when prices of commodities are inflated, it affect all the economic activities in the country. The findings also revealed that debt negatively affect Nigerian economy and this is because the money borrowed was diverted to illegal channel by the corrupt instead of investing into economy. Unemployment rate and GDP shows to be positively related and this was because of the increases in population of the country. Based on the results from findings it was recommended that instruments of monetary and fiscal policies should be effectively used to tackle the economic recession and bring the economic activities back on track and thus, effective used of both the monetary and fiscal policies is not only the sufficient condition but a necessary condition.
Keywords: Nigerian economy, business cycle, recession, unemployment, inflation, economy.
Title: An Analysis on the Causes and Effects of Recent Economic Recession on the Nigerian Economy
Author: Abubakar Sadiq Ibrahim, Asst. Prof. Wang Lanhui, Dr. Salihu Habibi Mohammed-Gani, E.M.B.P. Ekanayake, Abdul Ibrahim, Sasima Aree
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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