• Page Views 63

Nigeria Will Go Into Recession If COVID-19 Continues

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has warned that Nigeria may go into recession if the coronavirus (COVID-19) pandemic continues for the next couple of months.

She stated this during her appearance on Channels Television’s Politics Today where she gave an update on measures taken to mitigate the effect of coronavirus on the nation’s economy.

“We are hopeful that this pandemic will be limited in time,” the minister said during the interview on Friday.

She added, “If it is an average of three months, we should be able to close the year with positive growth. But if it goes longer than that – six months, one year – we will go into recession.”

According to Ahmed, the Federal and the state governments will struggle in terms of revenue, as long as the crude oil price is as low as $30 and sub-$30 per barrel.

She explained that this was why the government was looking for alternative sources of funding in the form of budget support to boost the economy towards the trying times.

As part of measures to curb the spread of coronavirus and reduce its effect on the economy, the minister noted that President Muhammadu Buhari set up the Presidential Task Force on COVID-19.

She believes the committee, comprising key Ministries, Departments, and Agencies (MDAs) and chaired by the Secretary of the Government of the Federation (SGF), is up to the tasked.

A Worse Impact
Ahmed also spoke about the recommendations of a former vice president, Atiku Abubakar, to support Nigerians in the course of the pandemic.

Atiku had proposed the distribution of N10,000 to 30 million households as foodstuff supplements, reduction of the petrol pump price, and suspension of stamp duty.

The former vice president had also called for the provision of N1,500 free airtime to 100 million mobile phone lines for emergency calls.

In her response, the minister said the government has noted Atiku’s recommendations but the consequences were being considered.

The government, according to her, is looking at the possibility of giving out stipend and to increase the stipend that it is already giving out to the category of Nigerians that are classified as the poor and vulnerable.

Ahmed said, “What we are doing is to make sure that we are able to respond to the health crisis because if it gets out of hand, it has also a direct impact on the economy and we have so far shown that the country is able to respond adequately to the health crisis.

“Health facilities are being upgraded; we have found resources that we can put to also further upgrade. If we don’t respond adequately to the health crisis, the impact on the economy will be worse.”

Share This Article

SEC releases rules on crowdfunding, pegs paid-up capital at N100m

Next Story »

Kaduna markets witness influx due to curfew relaxation


  • Nobody Tells Me Who To Pick For Super Eagles Games – Rohr

    5 days ago

    Super Eagles coach, Gernot Rohr has said nobody dictates to him the players pick for the team’s matches. The Nigeria Football Federation (NFF) last week handed the ...

    Read More
  • The Return Of La Liga: What’s At Stake?

    6 days ago

    La Liga resumes on June 11 after a three-month absence due to the coronavirus pandemic. Real Madrid and Barcelona have been unable to pull away from each ...

    Read More
  • CBN Cuts MPR To 12.5 Percent, Retains Other Rates

    1 week ago

    The Central Bank of Nigeria on Thursday reduced its monetary policy rate to 12.5 percent as part of efforts to combat the economic effects of the coronavirus ...

    Read More
  • Things couple should avoid when trying to conceive

    3 weeks ago

    Preparing for a pregnancy or actively trying for one yields results for different women at different paces but if you are going to up your chances and ...

    Read More
  • Arthritis Plants Stem Cell Therapy Treatment and Prevention

    3 weeks ago

    Sponsored Article Arthritis, or “joint inflammation,” is a general term for a group of diseases that causes joint inflammation. Arthritis is inflammation (swelling) in and around the ...

    Read More