Nigeria is currently in a recession due to several factors: 1. Falling global commodity prices, especially for oil which is Nigeria's main export. 2. Limited foreign exchange earnings and inflows as oil revenues have declined. 3. Weak global capital flows. 4. Issues like revenue leakages, inefficient systems, militant attacks on oil installations, and the costs of fighting Boko Haram have exacerbated the recession. The document then discusses the symptoms of recession Nigeria is experiencing like currency devaluation, low foreign reserves, rising unemployment and companies folding. It provides recommendations on how Nigeria can exit the recession such as expansionary economic policies, institution building, and promoting exports.

1. WHY IS NIGERIA IN A RECESSION?
Akeem Oyewale
GMP Convention
December 2016

2. NIGERIA IN 2016
A country that’s 56 years old
Democratic country
Largest economy in Africa by GDP
Population: 170m approx.
Youthful segment: 50%
Rich in natural resources, with oil & gas major forex earners
Clement climate and weather, not on an earthquake prone plane
A country that can move a fast speed when properly revved up.

3. REFORM DRIVEN ECONOMY –
BENEFITS OF GEJ ADMINISTRATION
Power sector reforms
- Privatisation of PHCN leading to private ownership of generation and distribution companies;
- Introduction of appropriate pricing regime;
- Contracting out the management of the Transmission Company of Nigeria (TCN);
- National Gas master plan is being implemented, in order to enhance fuel-to-power capabilities.
Agricultural sector reforms
- Set up the Nigeria Incentive-based Risk-Sharing System for Agricultural Lending (NIRSAL);
- Incentivizing critical actors in the fertilizer value chain to improve productivity;
- Setting up staple crops processing zones. Dangote’s Kano State tomato paste factory is
evidence of fruits of this initiative.

4. REFORM DRIVEN ECONOMY –
BENEFITS OF GEJ ADMINISTRATION
Oil and gas sector reforms
- National oil and gas policy adopted in 2007;
- Introduction in Local Content Act resulting in divestment of IOCs from onshore asset
operations to more technologically intense offshore assets;
- Petroleum Industry Bill yet to be passed. This will result in a revision on how royalties are
paid on exploited oil.
- Private oil refinery under construction
Banking sector reforms
- Banking sector intervention;
- AMCON setup to clean up sector assets;
- National financial inclusion strategy;
- Cashlite initiatives;
- Migration to Basel II/II. More stringent capital requirements

5. IS NIGERIA IN A RECESSION?
A recession is one of the following:
I. Two consecutive quarters of negative growth
II. When real GDP growth is less than potential GDP growth
III. A contraction in output, investment and rising unemployment
Surat Al Furqan v 58

6. S
Source: FDC, Bismark Rewane

7. FINANCIAL INVESTMENT ADVISOR
Who is a Financial Investment Advisor?
 They help investors make sound investments.
They analyze a client's finances and make investment suggestions to help
the client create a sound financial plan.
Basically they are financial analysts.
Examples are financial analysts in the banks, in the research companies,
advisory companies etc.

9. FACTORS RESPONSIBLE FOR NIGERIA’S SLIDE INTO
RECESSION
1. Fall in global commodity prices, especially crude oil
2. Limited foreign exchange earning abilities/inflow
3. Weak flow of global capital
4. Revenue leakages (the popular whistle blower)
5. Inefficient systems/institutions
6. Militants’ attack on oil installations
7. Fighting Boko Haram war
8. Subsidies, that we could not afford
9. Lack of efficient diversification of revenue generative abilities

10. SYMPTOMS OF RECESSION
1. Currency devaluation
2. Unavailability of foreign exchange
3. Inflation, that could turn to stagflation
4. Depleted foreign reserves
5. Challenges with sub-national governments’ finances
6. Unemployment rising
7. Manufacturing concerns folding up
8. Opportunities for the discerning and the bold

11. WAYS OUT OF THE RECESSION
1. Government economic policies should be expansionary
2. Institution-building should be encouraged
3. Foreign investor-friendly policies should be implemented
4. Market-driven exchange rate should be encouraged
5. Export-driven investments/productions should be in place
6. We should produce what we need/eat and eat what we produce
7. Return of focus to agriculture and agric processing a sine qua non
8. Friendly finance sources for investors
9. We should be innovative
10. Let’s strive to work towards a society we want to see.

12. WORDS ON MARBLE
“You should be Value makers and not stock brokers.”
You should be a visionary.
FinTech disruptions are real
Opportunities abound: think and grab same!
Remember there would be a time when adverts for jobs would say “Humans need not apply”.
In fact, its happening now: fintech disruptions, mobile brokerage, Jumia, e-voting etc
What are you doing?
Mr Abubakar GTI
CEO

13. HUMANS NEED NOT APPLY: ARE
YOU READY?

14. QUESTIONS?