EFFECTS OF ECONOMIC RECESSION ON THE LIFESTYLE OF UNDERGRADUATES IN NIGERIA (EVIDENCE FROM TINUBU ADMINISTRATION)

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

According to the National Bureau of Economic Research (NBER), a recession is characterised by a substantial decrease in economic activity that affects the entire economy and lasts for more than a few months. This decline is typically observed in indicators such as real gross domestic product (RGDP), real income, employment, industrial production, and wholesale and retail sales (Charles et al., 2018). During a period of recession, a country's economy is operating well below its potential, meaning it is far from achieving optimal production and the natural rate of unemployment (Lazarov et al., 2020).

The Central Bank of Nigeria (CBN, 2017) states that economic recession can be attributed to two main sources: internal (endogenous) and foreign (exogenous) forces. The former is typically a result of conflicting views, improper application of economic theory, and regulatory carelessness or policy inconsistency. The exogenous factors that contribute to a recession are external to the economy and are outside the control of policy makers. These factors include events such as natural disasters, climate change, revolutions, and conflicts. The current economic recession in Nigeria can be attributed to various variables, including legacy factors, policy considerations, and political/security concerns (Paul et al., 2024).

An economic recession is a widespread occurrence that impacts nearly every element of those who depend on money and the general market. Therefore, students, just like any other individuals, are included in this economic equation and are susceptible to the influence of economic conditions. Nigeria's tertiary education-eligible population is 15,875,252, with a gross enrolment ratio of 10% according to UNESCO in 2018. In 2013, there were a total of 1,757,271 enrolments in tertiary education, with 1,252,913 of those being in universities, as reported by IOM in 2014. This is an increase from the 1,096,312 enrolments in 2008, as stated by Aluede et al. in 2022. In 2019, there were 1.8 million full-time undergraduate students in Nigeria, as reported by the Statista Research Department (2022).

Students actively participate in economic activities, such as depositing money in banks, engaging in buying and selling transactions, and utilising facilities offered by higher education institutions. The significant population of university students cannot be disregarded when considering the consequences of an economic slump (Iroadu, 2021). The economic crisis has exerted a profound influence on their lifestyle, education, and many individuals have experienced a tangible impact on their own finances (Kerim, 2022). The economic slump ultimately impacts students' confidence, conduct, trust in financial institutions, and overall well-being (Efe, 2020). Research findings suggest that unfavourable economic conditions might negatively impact students' mental health by disrupting regular family processes and parenting. This, in turn, increases their vulnerability to engaging in risky activities, which has a detrimental influence on their overall lives (Carlo et al., 2024). Furthermore, numerous parents are presently encountering significant challenges in meeting their children's educational expenses and fulfilling other essential requirements (Olowalagba, 2017).

Furthermore, a student demonstrates the characteristic of economic recession when they struggle to afford just one meal per day and are concerned about their incapacity to cope with the increasing expenses of food, dormitory accommodation, necessary textbooks, and other vital items on campus. Abraham (2018) states that students exhibit characteristics of an economic recession when they are unable to fulfil their needs, desires, and aspirations due to the prolonged effects of an economic downturn. This often leads to feelings of frustration, irritability, depression, hostility, exhaustion, and absentmindedness.

The ongoing economic recession in Nigeria has had a significant impact on several sectors, including the education system. Additionally, the rising inflation rate has further worsened the quality of education for the country's large population. The impact of this on vulnerable sections within any society, such as students, particularly those pursuing undergraduate studies, is widely recognised. The decline in students' academic performance can be attributed to several factors, including the psychological impact of harm inflicted on their psyche in educational institutions, the significant increase in the cost of education, inadequate staffing, and overcrowding in classrooms (Eze et al., 2024). Given the current inflation rate, it is safe to state that the typical undergraduate students in Nigerian Universities do not have enough pocket money to adequately cover their expenses for food, clothing, library supplies, and daily needs while in school. In order to satisfy these demands, the individual must seek alternative methods. Consequently, the mind is constantly in a state of unrest, unsure of what actions to do, which direction to pursue, and how to effectively fulfil the needs, wants, and desires of the individual and their academic pursuits (Abraham, 2018).

Sphere Ahmed Tinubu became the President of Nigeria in May 2023. The administration encountered a multitude of economic difficulties, such as inflation, volatility in foreign exchange, and elevated levels of unemployment (Arinze, 2024). The policies enacted to tackle these problems, such as the elimination of subsidies, restructuring of taxes, and initiatives to attract foreign investment, have yielded different levels of achievement and generated debate. Analysing the influence of the Tinubu government on students requires a thorough understanding of the specific economic conditions and policies that were in place during that time. This study aims to investigate the impact of economic recession on the lifestyle of undergraduate students in Nigeria, specifically during President Bola Ahmed Tinubu's administration.

1.2 Statement of the Problem

Economic recessions present substantial difficulties for every area of society, including the education sector. Undergraduates, who are at a crucial stage in their educational journey, frequently encounter distinct challenges during periods of economic decline. In Nigeria, the current economic recession during the Tinubu administration has worsened these difficulties, resulting in a visible change in the lifestyle and welfare of university students.

The economic downturn has resulted in an increase in both unemployment and inflation, thereby diminishing the financial assistance that undergraduates receive from their families. According to Odunayo (2023), a significant number of students face financial difficulties in meeting the costs of tuition fees, lodging, textbooks, and other necessary educational resources. Amadi (2024) supports this claim by asserting that the rising cost of living has had a significant influence on students' capacity to afford essential needs including food, transportation, and healthcare. The rise in expenses has compelled numerous undergraduates to pursue part-time jobs, which can hinder their academic performance. Undergraduates have been adversely affected by the financial and economic strains, which have also had a negative impact on their mental health. According to Bayo (2024), the combination of financial management stress and academic pressures has resulted in a rise in the prevalence of anxiety, depression, and other mental health problems among students.

Education is a valuable asset for Nigeria and it is important to make every effort to safeguard its standards. The impact of a recession on the quality of postsecondary education should not be tolerated, since it hampers creativity and the development of exceptional individuals who may contribute to the progress of Nigeria (Olowalagba, 2019). Undergraduates, aged 18 to 30, who are reaching financial maturity and independence, play a crucial role in the education sector of Nigeria as they are responsible for making their own economic choices. Nevertheless, individuals still depend on a certain source of revenue, be it from their parents, scholarships, or other types of financial aid. According to Amadi (2024), the convergence of economic recession, financial crisis, and environmental difficulties exacerbates the challenges faced by numerous working individuals and their families. Analyzing the social impact of the present economic slump on students requires identifying students from diverse backgrounds. This study aimed to determine the impact of the economic recession on the lifestyle of students.

Objectives of the study

The primary objective of this study is to critically evaluate the effects of economic recession on the lifestyle of undergraduates in Nigeria (evidence from Tinubu administration). Specific objectives of this study are to:

To find out whether there is a relationship between economic recession and students’ academic performance.

To assess the effect of high inflation on student’s food security 

To analyze how the economic recession has affected the financial stability of undergraduates in Nigeria

To identify coping strategies employed by undergraduates to mitigate the effects of the recession

1.4 Research Questions

The following research questions which are in line with the objectives of this study will be answered in this study:

Is there any relationship between economic recession and students’ academic performance?

What is the effect of high inflation on student’s food security?

How has the economic recession affected the financial stability of undergraduates in Nigeria?

What are the coping strategies employed by undergraduates to mitigate the effects of the recession?

1.5 Research Hypothesis

To determine the effectiveness of this study, the following research null hypotheses will be formulated to guide the study and it will be tested at 0.05% levels of significance.:

Ho: The economic recession in Nigeria have no significant effect on students’ lifestyle.

Ha: The economic recession in Nigeria have significant affected students’ lifestyle.

1.6 Significance of the study

This study is important because it illuminates the particular difficulties experienced by undergraduate students during an economic recession, offering vital knowledge for policymakers, educational institutions, students, and future research. Gaining a comprehensive understanding of these effects can assist in developing efficient approaches to assist undergraduate students and guarantee the uninterrupted progression of their education and overall welfare.

The results of this study will provide policymakers with solid data and information about the particular difficulties encountered by undergraduate students during economic downturns. This can facilitate the development of focused policies and actions to assist students and guarantee that their educational endeavours are not impeded by economic downturns.

Moreover, educational institutions might utilise the findings from this study to comprehend the financial and psychological pressures that their students are experiencing. This comprehension can result in the creation of enhanced support systems, including financial assistance initiatives, psychological well-being services, and adaptable educational alternatives to cater to the requirements of students.

 Moreover, by increasing public knowledge and understanding of the challenges faced by undergraduate students in times of economic downturn, it is possible to generate widespread support and activism aimed at enhancing student well-being. This can facilitate community endeavours and collaborations focused on offering further resources and assistance for students.

Moreover, future researchers will employ it as a comprehensive analysis of the existing corpus of literature. As a result, other students who are interested in studying this subject will have the chance to use this work as trustworthy information that can be thoroughly assessed. 

1.7 Scope of the study

Broadly, this study focus is to critically evaluate the effects of economic recession on the lifestyle of undergraduates in Nigeria (evidence from Tinubu administration).  The study will be carried out in Lagos State University.

1.8 Limitations of the study

Like in any human attempt, the researchers encountered several small limits during the investigation. The primary constraint was the scarcity of comprehensive literature on the topic, as there is a paucity of data regarding the impact of economic recession on the lifestyle of undergraduate students in Nigeria (based on evidence from the Tinubu government). Therefore, a substantial investment of time and effort was required to find the suitable materials, books, or information and collect data. 

Moreover, this study is limited by its limited sample size and restricted geographical reach, namely concentrating just on Nigeria. Hence, the findings of this study cannot be extrapolated, thereby necessitating additional research. 

Furthermore, the researcher's limitations were predominantly attributable to budgetary restraints, as they are a student and lack a means of financial support. The research location's transportation charges were difficult to afford due to the exorbitant cost of transportation, which is directly impacted by the current inflation in Nigeria.

In addition, the researcher encountered a time limitation as a result of having to conduct this research while simultaneously meeting the responsibilities of attending lectures and engaging in other educational pursuits.

1.9 Definition of terms

Economic recession: Economic recession as: "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales

Inflation: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

Undergraduate: An undergraduate is a college or university student who's not a graduate student. After high school, you can become an undergraduate. Undergraduates are students of universities and colleges: they've graduated from high school and have been accepted to college, but they haven't graduated yet.