We have just September 2016 to avoid a recession which started in June 2016 from continuing and deepening.
This 2016 recession I argue again is not as a result of a fall in oil prices but sustained by an attack on Household incomes. Household expenditures are nearly 70% of GDP…..far more than exports or Government spending.
Household incomes has been flat and falling due to inflation; new taxes and a fall in Naira value.
Consider that the “national minimum wage of N18,000 which was about $120 in 2010 has fallen to $42 in 2016.”….yet fuel alone has gone up in price to N145.
To exit the recession, the expansionary policies of the FGN and States must address how to improve the spending power of the Households. Unless spending, local Household spending goes up….we won’t exit the recession.
Household incomes are the key…..and that should be the focus.
We can consider reverse VAT…..where consumers are paid “cash back” when they spend, we can do rent support….many options exist but the Household wallet must be protected and boosted.
it’s our problem, we can fix
