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Nigeria Will Go Into Recession If COVID-19 Continues Beyond Six Months – Finance Minister

A file photograph of the Minister of Finance, Mrs Zainab Ahmed.

The Minister of Finance, Finances and Nationwide Planning, Mrs Zainab Ahmed, has warned that Nigeria could go into recession if the coronavirus (COVID-19) pandemic continues for the subsequent couple of months.

She said this throughout her look on Channels Tv’s Politics Right this moment the place she gave an replace on measures taken to mitigate the impact of coronavirus on the nation’s economic system.

“We are hopeful that this pandemic will be limited in time,” the minister stated through the interview on Friday.

She added, “If it is an average of three months, we should be able to close the year with positive growth. But if it goes longer than that – six months, one year – we will go into recession.”

READ ALSO: COVID-19: World’s Financial system In Recession, Worse Than In 2009 – IMF Chief

In line with Ahmed, the Federal and the state governments will wrestle by way of income, so long as the crude oil value is as little as $30 and sub-$30 per barrel.

She defined that this was why the federal government was searching for different sources of funding within the type of funds assist to spice up the economic system in the direction of the attempting occasions.

As a part of measures to curb the unfold of coronavirus and cut back its impact on the economic system, the minister famous that President Muhammadu Buhari arrange the Presidential Job Pressure on COVID-19.

She believes the committee, comprising key Ministries, Departments, and Companies (MDAs) and chaired by the Secretary of the Authorities of the Federation (SGF), is as much as the tasked.

A Worse Impression

Ahmed additionally spoke in regards to the suggestions of a former vice chairman, Atiku Abubakar, to assist Nigerians in the middle of the pandemic.

Atiku had proposed the distribution of N10,000 to 30 million households as foodstuff dietary supplements, discount of the petrol pump value, and suspension of stamp obligation.

The previous vice chairman had additionally known as for the supply of N1,500 free airtime to 100 million cell phone strains for emergency calls.

In her response, the minister stated the federal government has famous Atiku’s suggestions however the penalties have been being thought of.

The federal government, based on her, is taking a look at the opportunity of giving out stipend and to extend the stipend that it’s already giving out to the class of Nigerians which can be categorized because the poor and susceptible.

Ahmed stated, “What we’re doing is to make it possible for we’re ready to answer the well being disaster as a result of if it will get out of hand, it has additionally a direct affect on the economic system and now we have to this point proven that the nation is ready to reply adequately to the well being disaster.

“Health facilities are being upgraded; we have found resources that we can put to also further upgrade. If we don’t respond adequately to the health crisis, the impact on the economy will be worse.”

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