Minister of Finance, Budget and National Planning Zainab Ahmed said Nigeria will soon emerge from recession.
Over the weekend, Nigeria entered its worst economic recession in more than three decades. Gross domestic product (GDP) figures released by the National Bureau of Statistics on Saturday, November 21, indicate that the country recorded a contraction of 3.62% in the third quarter of 2020, sliding it into another recession.
While speaking at the ongoing 26th Nigerian Economic Summit hosted by the Nigerian Economic Summit Group and the Federal Ministry of Finance, Budget and National Planning on Monday, November 23, the Minister of Finance said that the country would emerge from the recession in the fourth quarter of 2020 or the first quarter of 2021.
She blamed the recession on the global coronavirus pandemic which forced other economies in other countries into recession. Ahmed said other countries also in recession, including UK, US, South Africa and many more.
“Let me remind us that before the impact of COVID-19, the Nigerian economy was experiencing sustained growth, which had been improving quarter by quarter until the second quarter of 2020, when the impact of the COVID-19 was felt.
Nigeria is not alone in this, but I will say that Nigeria has outperformed all of these economies in terms of the record of a negative growth.
While the economy has entered into recession in the third quarter, the trend of the growth suggests that this will be a short-lived recession, and indeed by the fourth or, at worst, the first quarter of 2021, the country will exit recession.
Our expectation of a quick exit, which will be historically fast, is anchored on the several complementary fiscal, real sector and monetary interventions that have been proactively introduced by government to forestall a far worse decline of the economy and alleviate the negative consequences of the pandemic.” she said