Nigeria risks another recession – FG
Federal Government yesterday said that Nigeria risks another recession if a strong third quarter economic performance in 2020 was not achieved.
Minister of State for Finance, Budget and National Planning, Clement Agba made the disclosure while speaking at an interactive session with the House of Representatives joint committees on Finance, Appropriation, Budget and Economic Development as well as Loans, Debt Management.
Representing the Minister for Finance, Budget and National Planning, Zainab Ahmed at the session attributed the possible slide to the challenges of COVID-19.
He said that the country was exposed to spikes in risk aversion in the global capital markets, fearing it will put pressure on the foreign exchange market as foreign portfolio investors exit the Nigerian market.
He said that crude all prices dropped sharply in the mild market with Bonny Light crude oil price dropping from a peak of US$72 pb on January 7, 2020 to below US$20 in April, 2020 as a result of which the US$57 crude oil price benchmark on which the 2020 budget predicated.
Agba said that the bid to arrest the situation made the review for the projections for Customs duty, Stamp Duty, Value Added Tax, and Company Income Tax revenues necessary.
