ECONOMIC RECESSION AND DIVERSIFICATION IN THE NIGERIAN ECONOMY:IMPLICATION FOR COUNSELLING

Abstract

Nigeria has historically relied heavily on crude oil proceeds as its primary source of national income. However, this paper explores the historical context, causes, and effects of economic recession, alongside strategies for recovery. Economic downturns are characterized by increased costs, risks, stress, uncertainty, and business failures, while simultaneously reducing employment opportunities. The current global financial crisis underscores the urgent need for Nigeria to diversify its economy. This paper highlights the importance of economic diversification and the crucial roles counselors can play. Counselors can raise awareness about diversification opportunities and encourage communities to explore new industries and investments. The researcher suggests that the Nigerian government, through the Central Bank of Nigeria (CBN), should organize and strengthen institutions like the pension fund, housing fund, and health insurance fund through a financial liberalization policy. This measure aims to mitigate the recurrence of future recessions in the country. In conclusion, Nigeria can emerge from a recession stronger if it diversifies its economy, reduces its over-dependence on oil revenue, prioritizes locally made goods, and actively combats corruption, which is a significant impediment to economic growth. Counselors contribute to this resilience by offering vital services such as career guidance, emotional support, financial counseling, business counseling, stress reduction, education and awareness, advocacy, family and relationship counseling, crisis intervention, emotional well-being, financial management, and small business resilience.

DOI: https://doie.org/10.10318/SER.2025968120