The double tragedy of the fall fuel price and poor income revenue might plunge Nigeria into another season of recession if care is not taken.
Speaking on the possibilities of another recession in Nigeria since 2016 during an interactive session on the 2021-2023 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), the Minister of State for Finance, Clement Agba revealed that unless we achieve a very strong Q3 2020 economic performance, the Nigerian economy is likely to lapse into a second recession in four years, with significant adverse consequences.
Clement also revealed that the Federal Government instituted a fiscal measures aimed at improving revenue and entrenching a regime of prudence with emphasis on achieving value for money.
The goal of the fiscal interventions, according to the Federal Government, would be to keep the economy active through carefully calibrated regulatory or policy measures designed to, among others, boost domestic value-addition, de-risk the enterprise environment, attract external investment and sources of funding.
Agba said that the Federal Government was also improving the tax administration framework to optimize government revenue. He stressed that this had been a major thrust of the Administration’s Strategic Revenue Growth Initiative (SRGI).