World Bank: Nigeria to tackle worse recession in 40 years due to the effects of the pandemic
The World Bank said on Thursday that the effects of the COVID-19 epidermic along with a crash in crude oil prices, is expected to "plunge the Nigerian economy into a deep recession, the worst since the 1980s."
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The World Bank estimated in a new report, titled "Nigeria in Times of COVID-19: Laying the Ground for a Strong Recovery," that the Nigerian economy is likely to contract by 3.2 percent this year.
It said: “This is being said or assumed with the belief that the spread of COVID-19 in Nigeria will be contained by the third quarter of 2020.”
The bank said the economy of the country may contract further if the spread of the virus becomes more severe.
The bank stated that: "Nigeria's economy was expected to grow by 2.1 percent in 2020 before the COVID-19, which means that the epidemic has led to a decrease in growth of more than five percentage points.
"Even if Nigeria manages to contain the spread of the virus, the overall economic impact of the COVID-19 epidemic is likely to be Great. Oil accounts for more than 30 percent of banking sector credit, 50 percent of total government revenue and 80 percent of Nigeria's exports."
"The effectiveness of government's reaction is germane to determining the speed, quality and sustainability of Nigeria's economic recovery because the long-term economic impact of the global epidemic is not certain," said Shubham Chaudhuri, Country Director for Nigeria, World Bank.