We’re heading for second recession in four years, says Nigerian Government

The Federal Government, on Thursday, raised the alarm that the Nigerian economy might relapse into a second recession in four years if no concrete steps were taken to improve the Gross Domestic Product.

The Minister of State for Budget and National Planning, Clem Agba, raised the alarm during his presentation at the Senate Joint Committee on Finance and Economic Planning on the 2021-2023 Medium-Term Expenditure Framework and Fiscal Strategy Paper.

He said, “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 adjusted the official exchange rate to N360/US$1, and more recently to N379/US$.”

He explained that the disruptions in global trade and logistics would negatively affect customs duty collection in 2020.

He added that the COVID-19 containment measures, though necessary, had inhibited domestic economic activities, with consequential negative impact on taxation and other government 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,” he said.

 

 

– Punch

About Delia Innoma

Delia Innoma is a prolific writer, promoter, artist manager with full professional proficiency in English, German and Igbo languages. She studied accounting and computer programming at the Institute of Management and Technology Enugu and Germany respectively. Delia is also a devoted mother of two and she founded the Diamond Celebrities Magazine. Her sense of responsibility and commitment to the Christian faith are essential forces driving her daily activities.

One Response to “We’re heading for second recession in four years, says Nigerian Government”

  1. Chukwuebuka chukwu Reply August 21, 2020 at 16:16

    I m really

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: