Minister Of Finance, Zainab Ahmed Reveals How Nigeria Is Likely To Slide Into Another Recession

The Minister of Finance, Zainab Ahmed, has warned that Nigeria may slide into a second recession in four years if a very strong third-quarter 2020 economic performance is not achieved.

Ahmed gave the warning today August 13 while speaking at the opening of a five-day interactive session on the 2021-2023 Medium Term Expenditure Framework (MTEF), and Fiscal Strategy Paper (FSP), held in Abuja. The interactive session was organized by the house of representatives committee on finance chaired by James Faleke.

Ahmed, who was represented by the Minister of State for Finance, Clement Agba, said Nigeria’s economy which has been affected by the COVID-19 pandemic, may lapse into a second recession in four years if a third-quarter economic performance is not achieved.

“Nigeria is exposed to spikes in risk aversion in the global capital market, which will put further pressure on the foreign exchange market as foreign portfolio investors exit the Nigerian market. Nigeria’s Q2 GDP growth is in all likelihood negative and unless we achieve a very strong Q3 2020 economic performance, the Nigerian economy is likely to lapse into a second recession in four years with significant adverse consequences.

“In response to the developments affecting the supply of foreign exchange to the economy, the Central Bank of Nigeria (CBN) adjusted the official exchange rate to N360, and more recently to N379.” she said

According to the Minister, COVID-19 containment measures, although necessary, have inhibited domestic economic activities which have had a rippled negative impact on taxation and other avenues government generates revenues.

“Consequently, the projections for customs duty, stamp duty, value-added tax, and company income tax revenues were recently reviewed downwards in the revised 2020 budget. Customs revenue has generally performed close to target over the last few years, exceeding target in 2019.

There has been some improvement in company income tax and VAT remittances; we expect significant improvements in VAT collections with the new VAT rate of 7.5 per cent” she said

Recent Posts

Rema, Tems, Seun Kuti to perform at 2025 Coachella Festival

The 2025 Coachella Valley Music and Arts Festival has announced its lineup, featuring over 100 artists at the Empire Polo… Read More

13 hours ago

Music Executive Ubi Franklin & Kizz Daniel Settles long time Differences

Kizz Daniel and Ubi Franklin have reportedly reconciled, ending their six-year feud. In 2018, Kizz Daniel and Ubi Franklin fought… Read More

13 hours ago

Actor Afeez Owo splashes millions on new car

Afeez Owo has recently acquired a new vehicle. The actor posted a video on his Instagram page featuring his new… Read More

13 hours ago

Wumi Toriola Boasts Breaks Toyin Abraham’s Record

Wumi Toriola is celebrating as her film, Queen Lateefah, has made three hundred and fifty million naira in just two… Read More

13 hours ago

Davido’s Second Daughter Hailey Adeleke Sweetly Celebrates Him At 32nd Birthday

Hailey Adeleke spoke up to celebrate her father's 32nd birthday. Many people, including his uncle Ademola Adeleke, the governor of… Read More

14 hours ago

Denzel Washington Shares His 15-Year Struggle With Alcohol

Denzel Washington has revealed his 15-year fight with alcohol. The star explained that his wine drinking began quietly but increased… Read More

14 hours ago

This website uses cookies.