Like Venezuela, Like Nigeria: Now that Venezuela has collapsed
Written by Ibraheem Sikiru
Published on 6/26/2019 10:27:00 PM
Venezuela is a giant South American country that share a very lot of common economic advantages with Nigeria. Like Nigeria in Africa, Venezuela is the wealthiest and oil-rich country in South America. Venezuelan economy is derived from the same source as Nigeria, Oil Production
is the primary focus of the governments of the two countries. Simultaneously, the vast oil productions of both Venezuela and Nigeria have now diminished to a way less than it was two decades ago.
While Nigerian economy is still in economic recession, the government said the recession is politically out though economically, the citizens could not feel the impact of a country out of recession, Venezuelan economy has just collapsed. The economic problems of both countries are mainly caused by years of sustaining corruption and failed government policies that have left millions of both Nigerians and Venezuelans in abject poverty.
Would you want to see a dilapidated National Infrastructures? Visit Nigeria or Venezuela. These are countries with unmetered inflation.
According to the International Monetary Fund (IMF), Venezuela may be hitting 10 million percent inflation before the end of 2019. This economic forecasting means that an item being sold for US$1 will now be sold for 10 million bolivars (bolivars is the Venezuelan currency).
Just like Nigerian President Buhari raised her national labors' minimum wage from #18,000 to #30,000 this year, Venezuelan President Maduro had ordered a 300% wage increment to 18,000 bolivars per month as the country's minimum wage. 18,000 bolivars is equivalent to US$6 per month and this money is not enough to push the citizens out of the poverty ring as intended by the government.
According to the Bloomberg
analysis, just like Nigeria, unemployment rate in Venezuela is currently 44% with expectation that half of the job market will definitely be slashed out by 2020. This unemployment record was experienced by Bosnia after it was ruined by war.
Like it is happening in Nigeria, the collapsed economy will lead the country into hyperinflation and disability to meet necessities, even with a job and/or high-paying salary. It results in high crime rate, power, medicine and food shortage. This economic collapse results into migration of citizens, seeking refuge in the nearby countries.
In fact, since 2015 about 10 percent (Three million) Venezuelans have fled the country in mass-migration. This is considered the largest and quickest mass migration in Latin America's history.
Like Nigerians, majority of the of Venezuelan living in the country lack access to education, employment and social services.
While Venezuela seems to have reach the oil richness limit and has started experiencing the diminishing marginal returns, what is Nigerian government doing to maneuver the approaching situations.