Finance Minister – Nigeria might enter recession as oil price drops
Nigeria’s minister of finance Zainab Ahmed, says the coronavirus pandemic and falling oil prices may have a negative effect on the economy. Noting that the nation is runing towards recession as oil price drops and this will have its toll on Nigeria Economy.
The minister made this known after the National Economic Summit meeting held in Abuja on Thursday.
In her remark, she said ‘’COVID-19 has resulted in the collapse in oil price’’.
She further lamented the resultant effect of the pandemic on the nation’s revenue and its effect on the allocation that goes to all other tears of the government of the federation.
“This will impact negatively, and the impact has already started showing on the federation’s revenues and the foreign exchange earnings”.
The finance minister made known that the recession will have its toll on the mases.
“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 noted that the economic situation surely will bring untold hardship upon the masses.
Furthermore, “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%.”
But, “the crisis will only multiply the misery, of the poor”. She added.