Non-Economic Factors behind deep Economic Recessions

Population of humans and their activities represent one of the major sources of change on this
planet. Therefore, it has become pertinent that, there is an ever growing need to understand,
model and predict these changes and their consequences.

Recession in Nigeria have not happened in a year or two, and there is not only a single reason
for this situation that have raised in Nigeria. There are many other factors that have
accumulated and slowly steadily it has accumulated over many years, and the result is todays
situations. There are many Economic factors that were responsible for the situation, but the
major reasons for the Recession in Nigeria are Non-Economic factors that have led deep
Economic crunch in Nigeria. The major Non-Economic reasons for the Recession:

1) INSECURITY: For the past seven years, Nigeria have been battling with Boko
Haram insurgency, cattle rustling, killer herdsmen, kidnappers, armed robbers and
so on. Boko Haram Insurgency alone has destroyed the economy of North-Eastern
Nigeria and had affected economies of many other Northern and even some southern
states that trade with their northern counterparts. Insecurity had also deprived Nigeria
of Foreign Direct Investment. The country had also channelled trillions of Naira it
could use for economic development into fighting Insecurity. Thus, the security
disturbance within the Economy and society was a major contributor for Recession in
the form of Decrease in trade and Depriving from FDI.

2) CORRUPTION: The amount of public corruption witnessed in Nigeria since the

return of democracy in 1999 in general and over the last 7 to 8 years is unprecedented
and is believed by many to be the worst ever in the modern history of nations. That
alone can destroy an economy. There is no public economic sector in the country which
corruption has not threatened. That shows the lack of Existing Law system prevailing
in the Whole Country and Economy as in particular, all these reasons have some how
direct or indirect impacts on the Economic Recession that is prevailing in Nigeria.
Being the oil giant, which runs on a grease of politics, Nigeria could be characterized
as a wealthy nation staying afloat on oil. However, the problem is that the money from
 oil does not flow to the people. The top public officials are very rich because they hide
behind the falsehood that public money belongs to no one.

3) POOR LEADERSHIP AND POLITICAL SYSTEM: Despite the many

ills reported of President Olusegun Obasanjo, he represents the best economic manager
Nigeria had from 1999 to date. His successor, Yaradua did fairly but Jonathan
(corruption and incompetence) and Buhari’s (bad policies and unpreparedness) terms
helped in putting the economy in its current state. And The lack of consistency and
greed of the politicians are among the causes of the haemorrhage in the economy. Every
administration, which comes on board, sets up a new policy initiative instead of
working on the previous one. Consequently, Nigeria now has a series of inefficient and
badly or not executed policy framework followed in Nigeria that has led to the Current
status of the whole Economy of Nigeria.

4) HUMAN DEVELOPMENT: In general, human resources play a great role in

the success of failure of any nation or organization. Most of the problems facing the
Nigeria economy are the reflection of the bad quality of the economic health and human
development of the nation. A situation which has been abandoned for many years. The
problems facing the educational institutions directly influence the problems in the
country's economy. So, it has been seen that HDI (Human Development Index) of
Nigeria stands at 157 out of 189 countries. The situation will be continuing to be
terrible if the necessary action will not be taken.

5) THE ENVIRONMENT AND HEALTH ISSUES: The health and

environmental standards of Nigeria are in a very poor condition. In 2013, the Amnesty
International announced that Nigeria experiences hundreds of oil spills annually in the
Niger Delta, largely because of sabotage, pipe erosion, and uncaring attitude by oil
firms. Another main problem facing Nigerian economy is the health issue. People suffer
from the lack of medicines and inexperienced doctors with bad education. What is
more, corruption abound in this area. In our country, if you have no money, you will
not get proper treatment.
CONCLUSION: Thus, it is quite evident that for an Economy to grow and to sustain, not
only the Economic factors or decisions are important but rather major societal issues are also
there that can affect and prevent the whole Country to grow either directly or indirectly, like
Pollutions, Crimes or terrorism, Undeveloped Human and society, Improver Government
regulations and Political system. Hence, Nigeria must start to eradicate these major issues that
are prevailing in their Country, because that might pave the way to come out of the Recession
fully and can sustain their growth.

REFERENCE:

 https://www.legit.ng/1116681-what-10-economic-problems-
facing-nigeria.html