Nigeria heads for recession –Minister of finance

The nation's finance minister, Zainab Ahmed, said the coronavirus pandemic and falling oil prices are likely to bring negative growth to the economy.

Ms Ahmed made the comments following Thursday's National Economic Summit in Abuja.

On the economy COVID-19 has caused oil prices to crash, " she said. "This will have a negative impact, and the impact on the revenues of the federation and the foreign exchange earnings has already started to show.

“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.”

She added that the economic contraction will multiply the misery of the poor.

“The crisis will only multiply this misery,” she said. “The economic growth in Nigeria, that is the GDP, could in the worst-case scenario, contract by as much as –8.94% in 2020.  But in the best case,   which is the case we are working on, it could be a contraction of –4.4%, if there is no fiscal stimulus.  But with the fiscal stimulus plan that we are working on, this contraction can be mitigated and we might end up with a negative –0.59%.”

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Thursday 21st of May 2020

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