Impact of Economic Recession on Macroeconomic Stability and Sustainable Development in Nigeria

Abstract

The Nigerian economy has been hit hard by a recession, caused by excessive imports, plunging oil revenue and sharply low investment inflows. This study is a wide analytical focus on the impact of the economic recession on Nigeria in the socio-economic context. The study uses multiple regression analysis of time series data on selected macroeconomic variables in two econometric models. The results show negative impact of these variables on economic growth and sustainable development. The recession impacts on socioeconomic and political lives in Nigeria, and should be studied to find the root causes and proffer solutions for sustainable economic development. This study perceives the economic recession as a symptom of deeper structural problems inherent in the Nigerian economy, and overdependence on external modern capitalist societies. It recommends that Nigeria needs positive economic change that is caused by structural and fiscal reforms. Nigeria should strive to diversify the economy, be self-reliance and corruption-free, eat what she produces, and mostly use what she makes. The paper concludes that Nigeria can get out of the recession.