There is a word that has come to be synonymous with everyday living in this dispensation; a word that is worst felt [in reality] by the pockets/purses and ruffles the common man who is still struggling for survival amidst financial insecurity. Recession has found its way into the subconscious of the common man; creeping into our economic set-up and consequently leading some financial incapacity...

Let us be reminded of its definition: Recession is typically defined as the decline in economic activity of a nation and this span over two (2) consecutive quarters and eventually resulting in an unfavorable Gross Domestic Product (GDP) obtainable in a fiscal year. This trend usually correlates with indices such as increase in the rate of unemployment, decreased purchasing power and/or lowered consumer confidence, inflation and a 'collapsed' stock market.

What are the actual causes of Recession?
As the saying goes: 'our today is a consequence of our many yesterdays'; recession did not just happen, it can be traced through years of shortsightedness and oversight of functions that had immobilized the formulation of sustainable fiscal and monetary policies- this is on the general scale but there are certain economic cataclysms- some pronounced and some subtle- that have led us to where we find ourselves today. And some of these shall henceforth be highlighted:

Unstable/non-functional fiscal policy: The fiscal policy has been drafted to augment investments in both the private and public sectors and also create a balance between the utilization of resources and the investments outlaid. However, these objectives have been defeated through the inconstant implementation of the policy and the unwillingness to upgrade the policy in order to cater for the sustainability of a dynamic economy.

High Interest rates: The rates charged by Nigerian banks have somewhat been hard on the average businessman and new 'startups' and with Central Bank of Nigeria setting the benchmark [on interest rate] at 14% late last year, the situation is made worse and would encourage steady cash flow as employers will tend to cut back on spending; this will also contribute to the rise in the rate of unemployment. On the long run, the high interest rate has served not only as a harbinger to recession but also acts in the way of tightening the claws of recession on the nation.

Deregulation of the oil sector: Considering the fact that petroleum resources serve a very important purpose in revenue generation in this nation, it is quite logical to conclude that any shaking up in the sector, will sternly reflect in the economic activities of the nation as a whole and it could take some time before the effect is overcome. For a quick mention [though may not be unconnected with deregulation] here: the downward plunge of oil prices in the international market also seem as a 'catalyst' for this situation we have plummeted into economically.

Inflation: 'What goes up, must come down', they say but this does not apply to a strained economy and even in a nation where prices of goods and services hardly come down aftermath a period of price fluctuations amidst high demand and/or temporary market imbalances. This, in turn might bring about lower purchasing power as an offshoot.
Imbalances between Wage and Price increase: Most of the times; when prices of commodities go up, the wage structure remains the same and this could make salary earners hold back or cut back on spending as they look to actualize some financial security. Consequent upon this, there occurs [though maybe negligible] a decline in the economic activities.

Financial misappropriation: How shall one not talk about this? The position we are in today is due [in part] to the inability of past administrations to save for the rainy day as the revenue, which could have sustained the nation to some extent, ended up in the coffers of some bigwigs. At least, what was gotten during boom would have compensated for the ebb in the oil sector.

Depreciation of the Naira: This has not been helped by our disposition as a 'consuming' economy. The naira continually loses strength against other world currencies as our major export commodity takes a downward slide.

The aforementioned are just some of the causes of recession in Nigeria; the list is not limiting in itself and permit me to say this: the government [whether past or present] are not to be solely blamed- the citizenry also has its own blame. I will end with this question: when last did you pay your tax dutifully?bolded text