FINANCIAL REVIEW: Navigating Through Economic and Financial Downturn


 FINANCIAL REVIEW


Navigating Through Economic and Financial Downturn

In an economy where our most dependent resource, Crude-oil has depleted in price from $100 to around $30 per barrel, the financial-economic crisis and lack of development in Nigeria has caused a lot of tension and anxiety amongst the people over the last few months, from the government institutions to the private sectors. Most of the blame goes to some ill-trained politicians who have failed to harness the abundant natural resources and human capital in their states, while other blames goes to some uninformed citizens who have not been proactive to seize opportunities surrounding them like the tomato scarcity. 


 Economists refer to the coexistence of vast wealth in natural resources and extreme personal poverty in developing countries like Nigeria as the "resource curse", although "resource curse" is more widely understood to mean an abundance of natural resources which fuels official corruption resulting in a violent competition for the resource by the citizens of the nation. Previously hindered by years of mismanagement (wastages of revenue, lack of saving, nepotism, lack of foresight, diversification, and lack of investment on infrastructure), economic reforms of the past decade have put Nigeria back on track towards achieving its full economic potential.
However, ways to navigate through this financial downturn are not far-fetched. The political structure and work force should be reduced especially in the legislative chambers. Diversification of the economy to other sectors like Agriculture, Film, Telecommunications, Sports and other Mineral resource industries would also help the local manufacturing industries and help Nigeria save $52.79 billion spent yearly on importation. Exportation is key to a value driven economy and a tax evolution system has always been a sustaining factor for every developed economy like the United Kingdom and United States of America.





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