Impact of Recession on Side Hustles in Nigeria

This extensive report investigates the multifaceted impact of economic recession on the rise of side hustles in Nigeria. It delves into the causes of the recession, including the global financial crisis and over-reliance on oil, and examines its consequences such as high interest rates, increased inflation, reduced consumer confidence, and decreased real wages. The report explores the effects of business development within this context, highlighting the importance of economic diversification. A significant portion is dedicated to analyzing various side hustles in Nigeria, including cocoa farming, copywriting, IT security, and livestock farming. The research methodology employed is a mixed-methods approach, combining quantitative data from surveys of 100 Nigerian respondents and qualitative data from literature reviews and interviews. Statistical analyses, including frequencies, correlations, and regressions, are presented to assess the relationship between recession and the growth of side hustles. The findings reveal a complex interplay, with side hustles increasing during the recession but not necessarily contributing significantly to overall economic recovery. The report concludes with recommendations for policymakers to address the underlying issues of unemployment and promote sustainable economic growth.

Impact of recession has increased side hustle in Nigeria
Name of the student:
Name of the University:
Author note:

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Abstract:
Keyword:

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CHAPTER ONE: INTRODUCTION
1.1 Introduction:
1.2 Research aims and objective:
1.2.1 Research aims:
1.2.2 Research objective:
1.3 Research background:
1.4 Research justification:
1.5 Ethical consideration:
1.6 Research limitation:
1.7 Chapter summary:
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction:
This is the study which will discuss about the effect of recession which has increased the side
hustle in Nigeria. Nigeria has experienced doldrums for a long period along with five
consecutive quarters when the economy is being shrinking. The economy as well as the
business cycle is being regarded as one of the precious interesting topics within the modern
macroeconomics theory. The economy of Nigeria is being gradually shifting from the
economic recession towards the entire economic meltdown that is catastrophic, deadly as
well as heart-breaking in nature. Nigeria is being regarded as the hub of the economy of
Western Africa which is stagnant. The declaration of the global financial crisis is being
followed. The financial crisis as well as the global economy is being regarded as a major
concern of the economists, the political leaders and the financial institution managers over the
world. When the global financial crisis is being expressed, then it is expedient as this is being
regarded as the foundation and the spine of the developing economy. This is the place where
Nigeria is being included.
In the year 2016, in Nigeria, the things were turned austere specifically and gave birth to long
impregnated recession. This gave rise to the rate of unemployment considering the youths of
Nigeria. As a flow, the goods prices and the services were increased continuously by over
100%. There was the devaluation of the purchasing power. Failures were experienced within
several companies which were highly profiled. The production facilities of the multinational
companies have shifted their facilities out of Nigeria. This is the study where numerous
measures are being suggested by the researchers that is being required to recover the

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economy of Nigeria.
2.2 Economic Recession in Nigeria:
The word economic recession is comprised of two words that is the Economic and the other
is the Recession. As per the Merriam-Webster Dictionary, the term Economic specifies about
the management of production, the distribution as well as the goods consumption and the
service consumption. Recession is mentioned as the time of reduced economic activities.
Earlier the economic activities are mentioned as the distribution, the production and
consumption. As per a study, the recession is being termed as a general downturn within an
economy. This is the thing which is linked with high employment, maximum inflation and
slowing of the gross domestic product.
The economic recession is also being referred as the financial crisis as well as the economic
crisis and the financial crisis as well. This is the time when the economy is slowed. This is
characterised with the devaluation of the financial institutions and the declining of the
productivity. This often takes place because of reckless and unsustainable money which is
being lend. The economic recession is being known as the period of general decline of the
economy and is accompanied typically through a drop within the stock market and the
unemployment is increased and thus, a decline is observed within the housing market.
As per some scholars, the cession is known as the period when there is a decline which is
observed significantly considering six months at a minimum. This specifies about a drop
within the following economic indicators:
 Real Gross Domestic Product.
 The individuals’ income level and the government revenue generation.
 Manufacturing,
 Employment and
 Retail Sales.
2.3 Causes of Recession within Nigeria:
There exist two chief reasons for the occurrence of the recession within Nigeria, which are:
 The economic recession which has taken place due to the financial crisis and the
global economic.
 Economic recession which has taken place through the other factors of Nigeria.
2.3.1 The economic recession in Nigeria due to the financial crisis:
The present global crisis has been introduced as a financial crisis which is presently known as
the global economic crisis. This is the crisis which is unprecedented regarding the severity of

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the credit contraction. This is having the roots within the segment of banks while not
considering the foreign exchange or the securities market. This is the crisis which is being
born within US as there are certain laxities, which is there within US. This is then spread
towards Europe and then over the entire developing countries and spread globally. Some of
the countries which is not being affected by the financial crisis whereas, these countries then
became effected in the second round as this crisis has turned into economic issues now.
An economic boom is being followed as the global financial crisis among the year 2003 and
the year 2007. This is the period, when the world economy is being expanding for an average
of 5% in a year. While, a combination of factors has precipitated the current crisis which has
combined the emergence of the subprime rates within the housing sector of USA, which is
being deepening the crisis of the financial market, the crude prices of oil is risen and the
surges within the commodity prices where the series of the bankruptcy is triggered, forced
mergers, employment loss, firm concerns and closures within the corridors of the analysts of
economic policy within USA and the major capitalist economies. Within the financial crisis
course, there is the dropping of the rate of the economic growth rate towards about 1%
among the fourth quarter of 2007 and third quarter of the year 2008.
The sub-prime crisis impact has been spread well over US, which has reasoned a widespread
squeeze within liquidity as well credit. There is a hike within a price of the primary
commodities, the speculation has fuelled this partly, where the financial crisis is being shifted
towards the commodity markets. The challenge is being added considering the intent of

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policy makers and avoiding the recession. The inflation is kept under control at the same
time. The negative effects of the financial crisis of the world has been revealed by the Global
Development Finance which has reasoned liquidity as well as the further assets has been
flown towards the developing countries within Nigeria for dropping by 41% in the year 2008.
In the year 2007, from the peak of $ 1.2 million, the expansion of the finance has been moved
towards the developing countries which is being sharply dropped down in the year 2008 to $
707 million. This is being revealed, from the projection about the dropping of the capital
flows further by $363 billion in the year 2009.
The current financial crisis which has happened globally has taken place because of
numerous factors which is comprised of numerous things like:
 The United States housing market is collapsed.
 The regulatory conditions of the tax financial.
 The implementation deficiency of the conditions of the strict corporate governance
within US and within most of the developing economies.
Many businesses are being crumbled due to the global financial crisis where the other
corporate giants which are formidable are being included over the world. Regarding these
unusual circumstances, the economic crisis of the country of Nigeria is being drawing the
attention. Nigeria has been passing through the booming cycle of oil from the late 1970 till
the commencement of this period. From the preceding decade, the economy of Nigeria is
caught within a prolonged stagnation which is obvious within the late period during the year
2015. This is the thing which is being coupled along with the financial crisis which is
systematic. This is the reason behind the tagging of the era of the researcher as the crisis era.
This has been marked as memorable due to the dropping of the economic activity as well as,
there is the weakening of the financial system.
2.3.2 Economic recession which has taken place through the other factors of Nigeria:
The oil boom is being regarded as the other reason of the economic recession within Nigeria.
There was a massive increase of the revenue of oil after the Middle-East war at the ear 1973.
This has structured unexpected, unprecedented and unplanned wealth considering the country
of Nigeria. This has given rise to a dramatic shift of the policy from an approach which is
holistic, till the time they are benchmarked against the oil sector state. Moreover, when the
environment of business is conducive considering the new investments, there is the
investment of the newfound wealth of the government within the socio-economic
infrastructure over the country, specially within the urban countries. While, a growth is being

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observed within the service sector. Many of the Nigerians, those are able-bodied are being
shifted because of the relative attractiveness of the urban sector from the hinterland, where
the farmlands are being abandoned considering the cities and has hoped for partaking the
prosperous and the expanding urban economy. Social issues like the crimes, unemployment,
pollution and congestion has been created by this. While, economically, Naira which is
known as the national currency of the country is being strengthened as the outflows is being
outweighed and there happens the construction of the foreign reserves. Till the year 1985,
Naira is being regarded as a stronger currency than that of the US dollar. The consumption
habit which is import oriented has been encouraged by which the Nigeria is being turned into
the perennial net importer. This is being considered as a major problem with the decreasing
of the oil earning along with the prices of the oil which is lower internationally.
2.4 General Consequences of the Economic Recession in Nigeria:
The general consequences of the recession are like:
 Maximum Rates of interest: The liquidity limits as well as the availability of the
money amount that is available for making investment.
 The inflation which is being increased: A rise is being experienced within the good
prices as well as the services across a period. When there is an increment of inflation,
a reduction is observed within the percentage of the services and the goods with the
similar amount of money.
 The reduction of confidence of consumers: When it is being believed by the
consumer about the bad economy, then during the spending of money, they are to be
required for less likely. This is being regarded as psychological that possesses a real
impact over the economy.
 The real wage is reduced: The dropping of the real wages specifies about the pay
check of the workers, that is not being kept along the inflation. The worker is
required to make the similar money amount along with a reduction within the
purchasing power.
2.5 Effect of the business development over the Economic Recession:
The economy of the country is being affected by the business cycle that is the economic cycle
of the country. The economic-wide fluctuations within the production, the trade as well as the
activities of the general economy is being referred within the business cycle within a system
of free market. The free market economy is being mentioned as the one, when there is no
intervention of the government within the economic activities rather than the interaction of

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the demand and the supply towards the correct equilibrium within the market. The upwards
as well as the downward movements of the GDP that is the Gross Domestic Product are being
regarded within the business cycle and the period of contraction and the expansion is being
referred within the level of the economic activities that is the business fluctuations
considering the trend of the long-term growth. These are the fluctuations, where the shift is
being involved across the time within the periods of a relatively rapid growth of the economy
as well as the period of the decline.
The contemporary development of the country Nigeria is being sustained with extreme
dependence over one single primary commodity, which is oil. This is the thing which is being
accounted for over 95% considering the export earnings. The crude oil is being contributing
over two third revenue of the government and about 12% of the GDP. The Nigeria is being
extremely depended over the crude which is being rendered towards the instability of the
forces of market along the grave implications towards the economic development as well as
the growth of the nation. Thus, for fostering the economic stability of the country, as well as
for becoming an entire partner within the global economy, of this century that us the 21st
century, the country is required to be embarked over the export diversification and benefits
are being granted from the major stock of the natural resources. The diversification approach
of Nigeria, the production and the export are required to be covered, combining the
manufacturing, the agro-processing and services. The non-traditional agricultural goods are
required to be extended along with the industrial products that are non-traditional.

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In the year 1960, during the time of the political independence of Nigeria, the mainstay of the
economy of the nation is the agriculture. Food is being provided for feeding up the population
and bulk is being fetched regarding the foreign exchange earnings of the nation. While, the
crude oil emergence, since the year 1970, is being involved for modifying the economic
profile of the nation. To enhance the economic growth of the nation, diversification of the
economy is counted to be necessary into the exports that are non-traditional. Thus, the
vulnerability towards the instability of the price is being linked with the crude oil market. In
the sector of the agriculture, the diversification is to be regarded as to be vertical or to be
horizontal. These has the requirement of processing the primary agricultural commodities
into the finished or into intermediate products along with the considerable value-added. This
is the process which is being expected for the fetching of higher earnings related to export
along with the commodities like the palm produce, cocoa, rubber etc.
The Nigeria is being regarded as a nation which is richly endowed. This is performed with a
major array of solid minerals, that is being comprised of columbite, tin ore, tantalite,
wolfram, lead, gold, zinc, kaolin, shales, clay, and the radioactive materials as well which are
zircon, monazite, barytes, and molybdelite. These are the minerals which are being
distributed across the country Nigeria, where there is the exploitation of only few of them
generally by the minerals that are small-scale. In the 1970s, before the advent of crude oil is
being regarded as a major source earner of foreign exchange. The sub-sector of the solid
minerals has ranked second within the sector of agriculture as the export earning source.
The solid mineral sector is facing some challenges for increasing the capacity for meeting the
domestic demands and the dynamic market is penetrated with advanced industrialising
economies. There is also the involvement of the adding values towards the primary
commodities within this sector. This is being regarded to be significant for the generation of
the higher earnings of the foreign exchange which is being aimed at the diversify the balance
of the payment position of the nation. As there is a unadorned under-capitalisation within the
sector of the solid mineral, thus, the GDP of the nation is being hardly contributed. This is the
sector which is being required to be modified for attracting the investors for the exploitation
of the abundant resources.
The country Nigeria is composed of a fastest growing as well as a which has accounted for a
GDP percentage of 59% and the employment is of 58%. Apart from the majorly advanced
economies as well as the emerging economies which is industrialised, the growth of the
economy has been leading a shift from the agriculture towards the manufacturing and the

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structural change within Nigeria. This has been resulting towards a shift starting from the
agriculture till the service sector. A 17% of GDP has been accounted towards the trade and
about 23% towards the employment. This has recorded a growth rate of GDP by 5.48%.
The internet utilisation of the country has been showing an increasing as per the NCC to 95
million people from the year 1996 which was only 10,000 people. Though much are being
busy with the mobile broadband. As the country is being experiencing a weak infrastructure
considering the internet and the physical, thus, the internet penetration is being capped within
Nigeria. The speed of the internet is 50 times slower than that of the South Africa, where the
online communication is limited and there is a potential lying considering the digital
economy. the large population considering the young urban people, the country has
experienced an accelerated growth considering the digital economy. An opportunity is being
lying in the court of Nigeria for leveraging the mobile technology for the generation of the
improved economic as well as the social outcomes over the sector of the consumer by the e-
commerce, the sector of the financial services by the utilisation of the mobile banking, the
mobile insurance as well as the social service through the healthcare and education.
2.6 Impact of Recession over the side business formation:
As Nigeria is being hit by the recession, thus, the banking sector has been started to swim
within the pond of the self-confidence considering the financial policies. The stock market
experienced a crash and the oil price was rocketed. The economy was being affected by the
crash. The capability of the economy has been reduced for fighting off the underlying
sickness considering the unevenly distributed agricultural depression, the banking issues and
the wealth. The economy of Nigeria has experienced a crisis of global economy along with
the crippling effects which has been resulting decline and a vigour in the economy of the
country.
There is also the consequence of high indebtedness towards the internal contractors, the
pension payment has been deriving as a major source of he worries as the dwindling finances
are not met with the obligation of the finances regarding the recurrent expenditure. The
country is also being experiencing an increased restiveness over the segment of the labour
unions and thus, has resulted to the increment of the industrial actions.
2.7 Side hustles in Nigeria:
The side hustles of Nigeria are the:
 Cocoa Farming business of the country Nigeria as well as the marketing of the
production of cocoa within Nigeria:

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The cocoa farming business of Nigeria is being regarded as one of the major business
investments of the country regarding the foreign as well as the local investors in the business
of agriculture. Considering the local as well as the international market, the cocoa is being
regarded as the chief agricultural product which is being sold rapidly. After the plantation of
the cocoa, this is regarded to be taken care of till this matures. This can harvest a lot of cash
for many years as the cocoa is being regarded as a perennial crop that has its surviving
production for several years. The largest producer of the cocoa in the world are the Indonesia
and the Ivory Coast. After that comes the Nigeria. While the most specific thing that is to be
regarded about the country Nigeria is that, the farming of the cocoa is not utilised within the
country. In the south as well as the south west of the country within Nigeria, there are
numerous fertile lands but ate not utilised still. The cocoa was regarded as the main economy
of Nigeria before the booming of the oil while, after oil is boomed, the farming of cocoa was
put aside, and the farming opportunities of the farmers are exploited. The farming of cocoa is
being regarded as the best opportunity within many of the West African countries. The cocoa
is being marketed in a very simple and in a rapid manner. This is the only produce of the farm
that is to be sold within one day and the market is observed for gaining the profit. The owner
of the business, those have wished to start the business for cocoa is only required to start a
farm to produce cocoa and then is waited for the profit which will come after this. An edge
will be provided to the business owner in the business of the cocoa farming.
 The next business is the business of copy writing:
When a low start-up business is searched to start within Nigeria, then comes the name of the
copywriting business within the country. This is the thing which can be in the structure of the
web page or a direct mail or else this can be jingle. The entire thing which is being required
for performing during the process of copywriting are the utilisation of the language, which is
required to be convincing for raising awareness and for selling an idea, a product or a service
as well. This is the skill which is being demanded highly through some of the major
companies or some of the business within Nigeria as well as the world. The normal consumer
is being persuaded with the powerful copywriter for changing the brand allegiance, the leads
are being created and the sales are being supercharged. The company’s outcome is being very
much depended over the quality of the written content. The copywriting is being regarded to
be very good opportunity and an easy opportunity considering the people with a better
grammar grasp and the words way. the entire thing which is being regarded is the laptop with
a good internet connection. A basic knowledge is required regarding the process of email

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marketing works.
One is required to be defined very much with the chief skills of copywriting as well as the
requirements as the entire thing which is being regarded is the procedure which will work.
Also, the main thing which is being required for starting the business is the command of the
English language.
 The IT security and the Cyber Security side hustle within Nigeria:
With the penetration of the internet, the thing which is being increasing in an alarming rate
with the digital connectivity is the Cybercrime. While, much of the organisations are not
possessing an appropriate security plan. Thus, business can be started for training the in-
house staffs of the organisations as well as recovering in a fast manner after any cyber-
attacks.
 Livestock Farming within Nigeria:
The easiest and the rapid business opportunity which is being required to be considered
within Nigeria is the Catfish farming. The livestock farming is being regarded as a booming
as well as a business which is much profitable within Nigeria and this is the trend, which will
not die soon. This is the lucrative business that is to be started with individual backyard. This
is the business which can feed over 180 million people over a regular basis. There is a
constant requirement of the livestock products.
2.8 Chapter summary:
For the prevention of the meltdown of the economy and to bounce back towards the
economic buoyancy within Nigeria, there should be the adoption of the numerous way-outs
as well as recommendation which is being required to be adopted in an efficient manner due
to the limitation of times. When these recommendations are being adopted by the
Government and the stakeholders as well, then it is required to be counted as an opportunity
for the country Nigeria. The recommendations are like:
 The statutory responsibilities considering the law enforcement agencies are
required to be clearly stated for the prevention of the discharging of the
misalignment of the responsibilities,
 The corruption is being regarded as a deadly disease within the governance which
is being combated with the utilisation of the strict and the deadly punishments
like the death sentence as well as life imprisonment.