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Nigeria goes into recession

Wednesday, August 31, 2016 - 01:31

Africa's biggest economy has slid into recession for the first time in more than 20 years as activity in both the oil and non-oil sectors slows. David Pollard reports.

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If there's an image of an economy going nowhere, then this is it. These buses close to being finished on their production line. Only, they don't have engines - its boss can't get the dollars to import them amid Nigeria's currency crisis. (SOUNDBITE) (English) CHAIRMAN, INNOSON VEHICLE MANUFACTURING, INNOCENT CHUKWUMA, SAYING: "Government have assured us that they are in control - that things will become better .... if finally they can't do anything, we will lay off some workers." Nigeria's just been confirmed as entering recession for the first time in over 20 years. Output down two per cent on the previous quarter. Falling revenues in its key oil export sector are mainly to blame - those also shattering the currency. But it's non-oil output is also suffering. Here in Aba, for instance, 2,000 shoemakers have shut up shop because of the surging price of materials. Many locals out of work: at around 13 per cent, unemployment is higher than its been in years. (SOUNDBITE) (English) SHOEMAKER, KINGSLEY OGBONNA, SAYING: "We are expecting a lot from the federal government, number one, cash to finance our business, then the equipment, the machinery we use, we will be using to do the work so that it will be easier for us." One simple material many can't afford is glue. Without it, a local livelihood becoming - quite literally - unstuck. Nigeria's wider economy in deeper and deeper need of a quick fix.

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Nigeria goes into recession

Wednesday, August 31, 2016 - 01:31