Minister of Finance, Zainab Ahmed has revealed that Nigeria might
be forced into recession as a result o the prevailing coronavirus
pandemic and falling oil prices.
Ms. Ahmed made the comments after the National Economic Summit meeting in Abuja on Thursday.
“On the economy, COVID-19 has resulted in the collapse in oil prices,” she
said. “This will impact negatively, and the impact has already started
showing on the federation’s revenues and on the foreign exchange
earnings.
“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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