There won’t be a need to start describing what recession really means since people like Dr. Oby Ezekwesili have done justice to that by reminding us that our GDP has experienced negative growth. In fact 11 oil producing countries are experiencing same, 6 are eminent while three are not in recession. In Nigeria, people like Mr, Tony Elumelu have advocated for Africapitalism, where government can partner with entrepreneurs and businesses to create jobs and life people from poverty.
Yet again there has been a long debate on private-public partnership or what most people will refer to as privatisation of government infrastructure and facilities; to them nothing in the hands or care of government really works. They are of the opinion that government should only be regulators of the economy, policy makers, and the referee to enforce the rules of the game in business. I somehow disagree with this aspect of private involvement which makes a government incapacitated to achieve anything excellently well.
Now we are in a recession and everyone is crying out to government, have you wondered it is so? Simply because money is not in circulation like we use to have and government is the one in charge of releasing money into the economy. Everyone from entrepreneurs, businessmen and women, contractors, consultants, foreign investors, construction companies, small business, shops, etc, are all affected because of it. The one that pays the bills (government) has decided to be conservative in the face of dwindling oil revenue and huge effects are being meted out to all Nigerians.
So even when you have private clients or customers, it still boils down to the government/CBN who are in-charge of pumping money into the economy. Real estate is affected because people who have made their monies from government no longer have much money to spend on properties. Banks no longer receive huge amounts from government agencies due to the creation of the Treasury Single Account (TSA) which is now domiciled with the Central Bank Of Nigeria (CBN).
If you have shop for selling clothes or personal items, people will no longer visit like they use to because one way or the other prices have hiked, salaries are same or reduced, so buying decisions will need to be prioritised to avoid getting into further trouble in an already troubled economy.
This recession has proved that government runs and is the driver of the economy. They wield so much power and can do and undo. So the private sector’s success is highly determined by the actions and inaction of government; they need to government to survive and thrive, they need the government to have access to businesses and more clients.