We Are Facing Terrible Growth, Nigeria is heading Towards Recession – Minister of Finance
The nation’s finance minister, Zainab Ahmed, says the coronavirus pandemic and falling oil expenditures are set to pressure the financial system into terrible growth.
Ms. Ahmed made the remarks after the National Economic Summit assembly in Abuja on Thursday.
“On the economy, COVID-19 has resulted in the cave in in oil prices,” she said. “This will affect negatively, and the affect has already started out displaying on the federation’s revenues and on the overseas changeearnings.
“Net oil and fuel income and inflow 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 quantity that is supposed to have been realized through the cease of that first quarter.”
She brought that the financial contraction will multiply the distress of the poor.
“The disaster will solely multiply this misery,” she said. “The financial increase in Nigeria, that is the GDP, ought to in the worst case scenario, contract viaas an awful lot as –8.94% in 2020. But in the nicecase, which is the case we are working on, it ought tobe a contraction of –4.4%, if there is no fiscal stimulus. But with the fiscal stimulus graph that we are working on, this contraction can be mitigated and we would possibly give up up with a bad –0.59%.”