Impact of Economic Recession on Government Performance in Nigeria (1990-2018)

Abstract

Nigeria consider as Africa's biggest economy, now a days this economic power facing the worst economic crisis as a result of the falling of oil prices, inflation and insecurity, causing the collapse of the country's economy. Nigeria is members of the Organization of Petroleum Exporting Countries (OPEC), meaning that it depends on selling oil for maintain government revenue. As a result of the collapse of the economy in 2016, this led to the loss of its first economic position in Africa. (Reuters, 2016) It has attracted investors from all over the world because of its strong economy, the steady growth and diversification of investment opportunities in many economic sectors due to rapid population growth, services and urbanization has had an impact in bringing the Nigerian economy to the forefront. (Noufal, 2016) The economic growth has had repercussions in the rise of many infrastructure projects as well as large real estate projects that attracted investors. The Nigerian federal system had the ability to support the rapid growth in resources and job creation for citizens, but the interrelationship between federal and state governments need to develop policy of cooperation and coordination in many areas. (Oladakun, 2013) This paper will discuss factors that hinder economic growth such as inflation, interest rate, corruption, etc., and what the Nigerian government should do to overcome this crisis, therefore, to ensure sustained economic growth, the government must monitor and manage these factors, the negative point is that Nigeria is very slow in the way of growth, it’s impossible to regain its first position soon. The new government has a great responsibility to resolve this crisis, which requires the effective management and cooperation of all parties with the government, as in times of crisis, where citizens look at their leaders and expect that they will work to mitigate the damage caused by the crisis, the state need the cooperation of all state sectors together in order to overcome their crisis.