22 May 2020

Nigeria heading towards recession – Minister of Finance Says

According to Nigeria’s Minister of Finance, Zainab Ahmed, the nation is heading towards an economic recession as a result of the current health crisis imposed by the coronavirus pandemic.

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The Minister made this remark while briefing newsmen today, May 21, shortly after attending the National Economic Summit meeting in Abuja.
She went on to reveal that the crash in oil price far below the what the country predicted has played a huge role at the sad new development.
“On the economy, COVID-19 has resulted in the collapse in oil prices. This will impact negatively, and the impact has already started showing on the federation’s revenues and on the foreign exchange earnings,” she said.
“Net oil and gas revenue and influx to the federation account in the first quarter of 2020 amounted to N940.91billion.
“This represented a shortfall of N125. 52billion or 31% of the prorated amount that is supposed to have been realized by the end of that first quarter.”
“The crisis will only multiply this misery. The economic growth in Nigeria, that is the GDP, could in the worst case scenario, contract by as much as –8.94% in 2020.
According to the Fiance Minister, Nigeria could experience an economic contraction of –4.4% if there is no fiscal stimulus. However, with the aid of fiscal stimulus the nation is currently working on, the contraction could end up as low as just –0.59%.

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