Yes, We Are In A Recession.

A recession is a slowdown in economic activities and general spending cuts. And that is what we have in Nigeria now. Government is slashing expenses and putting capital expenses on hold. Some states owe their workers. A lot of companies have slowed down recruitment and some are even retrenching workers. CBN is putting in place a contractionary monetary policy in it's bid to keep Naira from tumbling more. Businesses that are into import and trading are finding it hard to access foreign exchange. The GDP growth has greatly slowed down already for the first quarter of this year.

image: bizwatchnigeria.ng

Recessions provide also the biggest opportunities for those with cash to spare. It's a well known fact that most of the world's most successful businesses started in a recession. And the most rewarding investments are made during recessions. If you are into stocks, it is much easier to pick a winner now. If you are into real estate, you will find more bargain deals now. The only investment I wouldn't advise you to go into is bonds.

More importantly, if you run a business this is the best time to put a lot of mental resources in and operate optimally. The good news is that businesses that survive a recession always thrive in the end. Think about all the businesses that survived the late 1980s and early 1990s tough economic periods, they are the ones thriving now. A lot of the banks now thriving started during that period. Also accounting and legal firms too.

Yes, we are in a recession. Yes, it is a bad economic thing. Yes, whoever loses his job now has a very slim chance of getting another. Yes, even the government is shrinking expense and its workforce. Yes, a lot of multinationals have put on hold their massive yearly recruitment exercise. Yes, those having it bad should expect worse and those having it good should tread cautiously. Still this is the best of times for the opportunist!