FG says Nigeria’s economy will definitely go into recession
- The finance minister, Zainab Ahmed, has said Nigeria’s economy will go into a recession at an average of 4.4 per %
- Ahmed made the disclosure shortly after a national economic council meeting in Abuja
- The minister said the government was trying to reduce the impact of that recession on Nigerians through stimulus packages
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The finance minister, Zainab Ahmed, has said Nigeria’s economy will go into a recession based on the current assessment by the Nigeria Bureau of Statistics (NBS).
Ahmed told journalists shortly after the national economic council meeting in Abuja on Thursday, May 21, that the current data shows that the economy will go into a recession at an average of -4.4 per %, Premium Times reports.
Source: Twitter
“The National Bureau of Statistics (NBS) has made an assessment. So, it is the NBS assessment that Nigeria will go into a recession measuring at an average of -4.4%, she said.
The minister noted that the federal government was trying to reduce the impact of the recession on Nigerians through stimulus packages.
She said the economic team is making efforts to ensure that the recession is shallow so that the country can quickly come out of it in 2021.
The last time Nigeria entered a recession was in 2016.
A country’s economy goes into recession when its Gross Domestic Product (GDP) reduces for two consecutive quarters.
Nigeria is one of the countries hardest hit by the impact of the coronavirus pandemic.
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Meanwhile, Central Bank of Nigeria (CBN) governor, Mr Godwin Emefiele, has assured citizens that Nigeria’s $37billion current foreign reserves is “robust to support the economy.”
Emefiele gave the assurance during a virtual meeting held at the weekend with Chief Executive Officers (CEOs) of conglomerates in the country.
The apex bank governor, who spoke against the backdrop of a recent decline in the foreign reserves, pledged the apex bank’s “willingness to provide foreign exchange to companies that required such for raw materials and machinery that could not be obtained in Nigeria.”
He also assured the business managers of the commitment of the CBN to return the nation’s economy to the era when manufacturing and agricultural sectors accounted for larger contributions to the country's Gross Domestic Product, GDP.
He charged them to “support efforts aimed at growing the Nigerian economy and returning it to its glory days,” as Nigeria continues the process of the full reopening of its economy.
In another report, the Lagos state government has announced a slash of its 2020 budget due to the COVID-19 pandemic.
The total expenditure for the year 2020 is now N920.5 billion, less by N248 billion from the N1.68 trillion it had budgeted.
Legit.ng gathered that the state’s commissioner for economic planning and budget, Sam Egube, who announced this on the evening of Thursday, May 21, stated that the new figures would be presented to the House of Assembly for approval soon.
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