Recession!? Take A Licking And Keep On Ticking!
The word ‘recession’has become a buzzword, and is currently trending in Nigeria. Out there on the streets, the socially right way to greet one another has become, “How is the recession treating you?” The bug has even bitten the President’s office, causing them to put two of the planes in the President’s fleet up for sale.
But before we all get frantic about the word, the pertinent thing to do is to understand its meaning and implication. According to the Merriam-Webster Dictionary, recession is “a period of reduced economic activity.” It also means “to grow less or smaller.”
So, are we in a period of reduced economic activity? Or are we growing less or smaller as an economy? This should be the crux of the matter, which everyone must come to terms with.
Data released by the National Bureau of Statistics (NBS) shows that Nigeria saw consecutive declines of 0.36% and 2.06% in the first and second quarters of 2016 respectively.
In other words, it answers the question in the affirmative.
Adding his voice to this, a former Governor of the Central Bank of Nigeria (CBN), now the Emir of Kano, Muhammadu Sanusi, last August, told a gathering that the current recession was man-made.“The problem is that there is nothing that we are facing today that we did not know would happen. That is the truth. We made mistakes. Many of them deliberate,” he said.
“We ignored every single word that pointed otherwise. Economics is a science. It is not a perfect science. But, over decades and decades and centuries, people have seen that there are certain things that, when you do, will lead to certain consequences,” he added.
So, here we are in a recession, proven by figures and circumstance, though it seems like the excesses of the political class are increasing, while the spending power of the average Nigerian is drastically reducing. Another major effect of the recession is the crashing exchange rate of the Naira to other major currencies like the American Dollar and the British Pound.
It is no exaggeration to say that the times are hard and biting on people. Nevertheless, though these may be tough times, tough people will ‘tough’ it out. Despite the prevailing circumstances, the psyche of every Nigerian must be not to recede in these times of recession.
The mindset should be to get out of this present challenge and make it a stepping-stone. If the recession is man-made, then we can unmake it, and it starts with you. We can decide to individually grow in all ramifications. If each and every one of us can make it a point of duty to become more productive in the use of our time and resources, then we’ll be on the right track to beating the recession, even sooner than we expect.
Read More: These 5 Steps Will Make You Recession-Proof
If we can individually grow our capacities, we will collectively grow out of the recession. In other words, we can take a licking and keep on ticking.
In addition, as we push in our strides to surmount the times, it is advisable we also turn our eyes to the insurance industry. Why? This is because Insurance takes away the fear of the unknown and encourages the potential policyholder to take advantage of opportunities in line with his risk appetite. By doing this, insurance oils the wheels of business and commerce.
Because insurance prides itself on the ability to restore the insured back to the financial position he was before a disaster strikes, we believe it would be a good buffer at this time. Moreover, market trends suggest that periods such as a recession could be the best time to procure insurance because, every day, the values of assets increase, meaning that it would cost much more to replace lost or damaged assets. However, with insurance, the cost will be shifted to the underwriting firm that insured such assets.
The nation’s leaders have definitely contributed to our present situation. No doubts about that. But we don’t have to fold our arms and watch the situation swallow us up; neither are we helping the situation if all we do is sit down and point fingers, and not take action. This is a challenge we all must take. So, let’s do it, and let’s do it wisely.