August 3, 2020

World Bank – COVID-19 pandemic is expected to plunge the Nigerian economy into a severe economic recession

The collapse in oil prices resulting from COVID-19 pandemic is expected to plunge the Nigerian economy into a severe economic recession, the worst since the 1980s, the World Bank has said.

The bank stated this in its latest Nigeria Development Update report released on Thursday.

The report, titled ‘Nigeria in times of COVID-19: Laying foundations for a strong recovery,’ estimated that Nigeria’s economy would likely contract by 3.2 per cent in 2020.

It said, “This projection assumes that the spread of COVID-19 in Nigeria is contained by the third quarter of 2020.

“If the spread of the virus becomes more severe, the economy could contract further.”

It stated that before COVID-19, the Nigerian economy was expected to grow by 2.1 per cent in 2020, which meant that the pandemic had led to a reduction in growth by more than five percentage points.

The macroeconomic impact of the COVID-19 pandemic would likely be significant, even if Nigeria managed to contain the spread of the virus, it added.

It stated that oil represented more than 80 per cent of Nigeria’s exports, 30 per cent of its banking-sector credit, and 50 per cent of the overall government revenue.

With the drop in oil prices, government revenues were expected to fall from an already low eight per cent of Gross Domestic Product in 2019 to a projected five per cent in 2020.

The bank stated, “This comes at a time when fiscal resources are urgently needed to contain the COVID-19 outbreak and stimulate the economy.”

It noted that the pandemic had also led to a fall in private investment due to greater uncertainty, and was expected to reduce remittances to Nigerian households.

17 thoughts on “World Bank – COVID-19 pandemic is expected to plunge the Nigerian economy into a severe economic recession

  1. Hi this is kinda of off topic but I was wondering if blogs
    use WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding know-how so I wanted
    to get guidance from someone with experience. Any help would be greatly appreciated!

  2. Its like you read my mind! You appear to know a lot approximately this, like
    you wrote the book in it or something. I feel that you just can do with a few
    percent to pressure the message home a bit, however instead
    of that, that is great blog. A fantastic read. I’ll definitely be back.

  3. You really make it seem so easy with your presentation but I find this
    matter to be really something that I think I would never understand.

    It seems too complicated and very broad for me. I am looking forward
    for your next post, I will try to get the hang of
    it!

  4. Hello there! Do you know if they make any plugins to help with SEO?

    I’m trying to get my blog to rank for some targeted keywords but
    I’m not seeing very good results. If you know of any please share.
    Kudos!

  5. Whoa! This blog looks just like my old one! It’s on a completely different subject but it has
    pretty much the same layout and design. Excellent choice of colors!

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: