Nigeria slides into another recession as COVID-19 lockdown bites

May 22, 2020
64 Views

The Nigerian economy is in another recession following consistent negative growth occasioned by the outbreak of the coronavirus pandemic and crash in oil prices.

Speaking at the recently concluded first virtual meeting of the National Economic Council (NEC) chaired by Vice President Yemi Osinbajo, Minister for Finance, Budget and National Planning, Zainab Ahmed, said that the ravaging coronavirus pandemic is not only affecting the country economically, but also affecting the health sector, as the resources to fight this appear inadequate.

She admitted that the crash in crude oil prices would negatively affect the country’s revenue and foreign exchange earnings.

This oil price crash and coronavirus pandemic outbreak has also affected the economic growth of the country and weakened the naira.

According to the Finance Minister, “Net oil and gas revenue input to the federation account in the first quarter of 2020 amounted to N940.91 billion. This represents a shortfall of N125.52 billion.

“But with the work that the Economic Sustainability Committee is doing bringing up a stimulus package, we believe that we can reduce the impact of that recession.”

Going further, Zainab Ahmed said, “And if we apply all that have been proposed and we are able to implement it we might end up with a recession that is –0.4%. But in any case, we will go into recession but what we are trying to do is to make sure that it is shallow so that we will quickly come out of it come 2021’’

Ahmed also disclosed that the economic growth in Nigeria could contract by as much as -8.94% in 2020 in the worst-case scenario. She also said that in the best-case scenario, it could be a contraction of -4.4%, if there was no stimulus and 0.59% contraction if there was a fiscal stimulus package.

You may be interested

Na Me Train This Girl For School – Man Whose Public Proposal Was Turned Down Creates Scene After Spotting His Ex With Another Man (Video)
News
2 views
News
2 views

Na Me Train This Girl For School – Man Whose Public Proposal Was Turned Down Creates Scene After Spotting His Ex With Another Man (Video)

Webby - January 23, 2022

The Nigerian man whose girlfriend rejected his public proposal and poured water on him created a scene after he saw…

Man In Pains After Finding Out His Last Child Belongs To Bestfriend Who Gave Him Money To Travel Abroad
News
3 views
News
3 views

Man In Pains After Finding Out His Last Child Belongs To Bestfriend Who Gave Him Money To Travel Abroad

Webby - January 23, 2022

File Photo  A Ghanaian man is in pain after discovering that he is not the biological father of his last…

Photos Of Oba Of Benin And His Youngest Wife, Queen Aisosa, With Their Adorable Set Of Quadruplets
News
1 views
News
1 views

Photos Of Oba Of Benin And His Youngest Wife, Queen Aisosa, With Their Adorable Set Of Quadruplets

Webby - January 23, 2022

The Oba of Benin and his babies The Oba of Benin, Ewuare II and his fifth wife, Queen Aisosa held…

Leave a Comment

Your email address will not be published.