Nigeria Might Go Into Recession, Says Finance Minister, Zainab Ahmed

The double tragedy of the fall fuel price and coronavirus might plunge  Nigeria into another season of recession.

Speaking on the possibilities of another recession in Nigeria since 2016 after the National Economic Council (NEC) meeting on Thursday, Ahmed, said that the ravaging coronavirus pandemic is not only affecting the country economically but also affecting the health sector, as the resources to fight this appear inadequate.

She said: “It is not news any more that these are very difficult and challenging times. We are facing a very significant economic downturn; a time that we have not seen in the history of our country.

“On the economy, COVID-19 has resulted in the collapse in oil prices. 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 admitted that the crash in crude oil prices would negatively affect the country’s revenue and foreign exchange earnings. Ahmed also said that oil and gas revenue for the country, in the first quarter of 2020 suffered a 31% shortfall, representing about N125.52 billion.