The -6.1% decline is also Nigeria’s steepest in the last 10 years.As with most other economies around the world, the sharp drop in Nigeria’s GDP growth is largely down to the slowdown in economic activity after the country resorted to a lockdown back in April to curb the spread of the virus.
Before COVID-19, the Nigerian economy …
Learn how the World Bank Group is helping countries with COVID-19 (coronavirus).Full Report: Nigeria in Times of COVID-19 : Laying Foundations for a Strong Recovery (English)Publication: Nigeria Development Update: Rebuilding After COVID-19 Projections show Nigeria’s economy will continue to grow faster than South Africa’s. The Nigerian government is getting its hands around an economic sustainability plan after revising its oil revenue assumption price to $28pb.
To learn more about cookies, With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. Nigeria’s economy contracted by 6.1% year on year in the second quarter of this year, latest reports from Nigeria’s statistics bureau show. With the drop in oil prices, government revenues are expected to fall from an already low 8% of GDP in 2019 to a projected 5% in 2020. Brent crude, against which Nigeria’s oil is priced, fell by $2.83 to $22.10 per barrel as of Monday 31st of March 2020.
Economic activities have been disrupted and women’s livelihoods have been particularly impacted. In addition, the fall in remittances is likely to affect household consumption because half of Nigerians live in remittance-receiving households, of which about a third are poor.The government of Nigeria has already taken important health, fiscal and monetary measures to contain the outbreak, moderate the recessionary pressures and start mitigating the effects of the economic shock. Nigeria’s economy contracted the most in at least a decade in the second quarter as the crash in oil prices and the global fallout from Covid-19 hit … Looking ahead, the report discusses policy options in five critical areas that can help Nigeria recover from the COVID-19 crisis: (1) containing the outbreak and preparing for a more severe outbreak; (2) enhancing macroeconomic management to boost investor confidence; (3) safeguarding and mobilizing revenues; (4) reprioritizing public spending to protect critical development expenditures and stimulate economic activity; and (5) protecting poor and vulnerable communities.Besides the assessment of the economic situation, this edition of the Nigeria Development Update discusses the impacts of the 2019 land border closure; the opportunity to promote agribusiness for food security and job creation; and options to leverage emigration, remittances, and the diaspora for development.Global data and statistics, research and publications, and topics in poverty and development Beyond the loss of life, the COVID-19 shock alone is projected to push about 5 million more Nigerians into poverty in 2020. This comes at a time when fiscal resources are urgently needed to contain the COVID-19 outbreak and stimulate the economy. While before the pandemic, the number of poor Nigerians was expected to increase by about 2 million largely due to population growth, the number would now increase by 7 million - with a poverty rate projected to rise from 40.1% in 2019 to 42.5% in 2020.The report notes that the pandemic is likely to disproportionately affect the poorest and most vulnerable, in particular women. It has to trade, relate and invest with the rest of the world. Meanwhile, the pandemic has also led to a fall in private investment due to greater uncertainty, and is expected to reduce remittances to Nigerian households, which in recent years have been larger than the combined amount of foreign direct investment and overseas development assistance.The report shows that the human cost of COVID-19 could be high. Nigeria - Economic Forecasts - 2020-2022 Outlook. Oil represents more than 80% of Nigeria’s exports, 30% of its banking-sector credit, and 50% of the overall government revenue. This site uses cookies to optimize functionality and give you the best possible experience. No claims are made regarding the accuracy of Nigeria Economy 2020 information contained here. The dip follows thirteen quarters of positive but low growth rates.
In 2020, the outlook for the Nigerian economy hangs on a framework of a well-intended but slightly uncoordinated policy outline.
After all is said, the Nigerian market is not a Robinson Crusoe economy. Luckily, oil prices are rebounding to the levels of March 2020 ($39.5pb) and production is holding steady.