The Finance Dude

In order to bring the economy out of recession, the rule of the thumb has always been that government can do two things; it is either government increases spending and/or cut the tax. By increasing government spending, government saves the idle production outputs and hence sustain the production activities. The continued productions benefit people by giving them wages, interest, rent, and profits. In the end, people’s income and buying power increase. In Nigeria however, it is a dire situation as operators in the real sector have to deal with hydra-headed challenges of low purchasing power from consumers, inflation and high cost of doing business. How are Nigerian firms coping in recession? FEMI ADEKOYA writes. When the Minister of Power, Works and Housing, Babatunde Fashola, in February argued in favour of the increase in electricity tariffs, describing government’s move as “a painful pill,” which consumers have to “swallow”, little did many know what is yet to bef