According to Zainab Ahmed, the Federal Minister of Finance, Budget and Planning of Nigeria, Nigeria will go into a recession.
This information was confirmed after a thorough assessment by the Nigeria Bureau of Statistics. Nigeria’s economy is expected to contract from 4.4%, if the stimulus packages are properly implemented in the best-case scenario, to 8.9% in the worst case scenario.
Zainab Ahmed disclosed this information on Thursday, 21st of May during the National Economic Council (NEC) meeting in Abuja.
She said that a major reason for the decline in the GDP was because of the Crude oil price crash.
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The COVID 19 virus has played a huge role in the massive decline of Crude oil prices. The spread of the virus caused a total lockdown in many countries, while restricted movement in many others.
The lack of movement resulted in a lack of demand for the Crude oil products, lack of air travel which contributed to a high percentage of Crude oil consumption in the world.
As the lock down measures around the world relaxes, experts predict that the price of Crude oil will soar once again.
The fall in Crude oil prices resulted in the decline of Nigeria’s crude revenue by $326 million approximately 125.5 billion Naira in the first quarter of 2020.