Nigeria’s Economy Risks Recession If Not Properly Managed – Emefiele

Nigeria’s economy will fall below the 1.9 percent recorded in the first quarter of 2020, with genuine possibility of sliding into recession, the Central Bank Governor, Godwin Emefiele, has said.

The Covid- 19 pandemic has weakened business activities, as well as the sentiments in Nigeria’s domestic market.

Coupled with the fall in oil prices from $70 a barrel, with prices hanging around $40 per barrel, the possibility of growth for the economy has been dampened.

The apex bank governor in his personal statement contained in the communique by the Monetary Policy Committee said the economy was heading to successive contraction.

He said, “2020 GDP growth may fall below 1.9 percent recorded in 2020q1 with a genuine possibility of contraction in the remaining quarters.”

The governor however noted that the country may not escape the looming recession, “if the economy is not well managed. “

The International Monetary Fund had predicted that Nigeria’s economy may contract by 5.4 per cent this year, representing the worst in forty years.

The National Bureau of Statistics in its labour force report said unemployment rate was at 27.1 percent, which is the worst recorded in ten years.

Africa’s most populous country’s inflation rate rose to 12.8 per cent, which is reflected in the rise of food prices and other commodities.

According to Emefiele, current realities in the country shows the need for coordinated efforts among policy makers to ensure a quick resurgence of the Nigerian economy.

He said, “Deteriorating prospects, due to global headwinds and local imbalances, provide opportunity for us to reposition the economy, prop domestic productivity, and strengthen demand.”