For families, it will require a lot of sacrifice, adjustments and prudence in the management of resources to navigate the economic storm.
The National Bureau of Statistics (NBS) released the GDP report for Q3 2020 which officially confirmed the economy has slipped into a recession.
With the oil sector likely to remain depressed in Q4 2020, expectations of recovery will rest mainly on the future performance of the non-oil sector.
The Minister of Finance has said that Nigeria will exit the economic recession by the first quarter of 2021.
Peter Obi has warned that that the current recession could be worse than that of 2016, because debt raised by the administration was not properly invested.
The contraction in the oil sector indicates 7.26% points lower than the growth recorded in the previous quarter (Q2 2020, -6.63%)
New World Bank report paints a grim picture of Nigeria
Nigeria’s total foreign trade (import and export) rose marginally by 0.8% year on year, when compared to N8.24 trillion recorded in the corresponding quarter of 2019.
Zainab Ahmed admitted that the crash in crude prices would negatively affect the country’s revenue and foreign exchange earnings.
Covid-19 impact on Nigerian businesses can be classified into 3 major channels and they are the supply channel, the demand channel and the financial channel.
Although there have been a few gainers, most companies have lost major earnings due to COVID-19.
Nigeria is currently fighting on many fronts, battered by the sudden plunge in oil prices and the global economic slowdown resulting from the COVID-19 pandemic.
