How recession affects corpers: by Nchedo Chinwuba
Recession has been defined as a situation where a country experiences
two consecutive quarters of negative GDP growth rate. Alternatively, it has
been described in terms of massive unemployment accompanied with rising cost of
living due to inflation, a thorn in the side of every economy.
Considering the current state of the Nigerian economy, it is obvious
that it is in recession. Suddenly, every Nigerian on the street has become
either an economist or financial analyst, each attempting to describe in his or
her terms how and why the economy is failing. Pardon me for joining this group
as in this article, I’ll explain how the current recession affects the Nigerian
youth corp members (whom I shall refer to as “Youth Corpers” in this article).
Salary/Allowance – Let me begin by saying that the regular monthly
allowance of a youth corper (N19, 800) even during economic buoyancy was
sufficient only if the corper can fast three times a week and solely rely on
his or her legs as means of transportation. Now that the economy has taken a
downturn, the situation is far worse. Rising costs of daily living (food,
transportation etc.) has severely hampered personal budgets. Leaving most with
no other choice than to reduce their standard of living. Assuming the utility of
a corper was at its peak in January, now it would have reduced by almost 60
percent as more money will be needed to achieve the same level of utility or
satisfaction.
Unemployment – Along with this comes the grim prospect of unemployment
which is currently sweeping through the country. Companies are laying off
workers, so what hope is there for the new corper or the corper about to
complete his service year? And for those fortunate enough to have any kind of
employment, unspeakable terms and conditions usually accompany the job.
No more savings– Leaving the financial and material effects now, the
current economic situation also has negative impacts on the psychological and
mental outlook of corpers. Previously, youth carpers could enthusiastically
look up to the service year as an opportunity to save up some funds to start up
their dream business. Any such plan now is a waste of time. Savings are a
distant dream as it is a struggle to have enough to survive, not to mention
thinking about savings.
Forget borrowing – Compounding matters, the current high inflation and
lending rate discourages any thought of borrowing from financial institutions.
This dampens the morale of anyone looking to set up a business and will in the
long run kill the drive and passion for entrepreneurship among Nigerian youths.
Hard to start a business – Even though recessions are often viewed as
opportunities for most Startups to thrive, starting one is now even more
difficult in a recession. Most Nigerian youth corpers are resourceful and
default to starting their own businesses when they do not get jobs. Some of
these businesses end up blossoming into large corporations. Those who started
their own businesses after service, often rely on inheritance, loans or grants
from family and relatives to fund their startups. The recession makes this even
harder. Apart from the fact that the purchasing power of most people have
depleted severely, cost of goods and services have also increased considerably
making it even more difficult to bootstrap businesses.
The Nigerian corper isn’t fully employed. He or she is in a
transitioning stage and unsure of what will happen the thirteenth month after
service. And right now the future looks bleak. It is exigent that the
government at all levels create and properly implement meaningful policies that
can stimulate economic growth among the youths. Or else, we face the depression
after the recession.
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