The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has warned that Nigeria may go into recession if the coronavirus (COVID-19) pandemic continues for the next couple of months.
She stated this during her appearance on Channels Television’s Politics Today where she gave an update on measures taken to mitigate the effect of coronavirus on the nation’s economy.
“We are hopeful that this pandemic will be limited in time,” the minister said during the interview on Friday.
She added, “If it is an average of three months, we should be able to close the year with positive growth. But if it goes longer than that – six months, one year – we will go into recession.”
According to Ahmed, the Federal and the state governments will struggle in terms of revenue, as long as the crude oil price is as low as $30 and sub-$30 per barrel.
She explained that this was why the government was looking for alternative sources of funding in the form of budget support to boost the economy towards the trying times.
As part of measures to curb the spread of coronavirus and reduce its effect on the economy, the minister noted that President Muhammadu Buhari set up the Presidential Task Force on COVID-19.
She believes the committee, comprising key Ministries, Departments, and Agencies (MDAs) and chaired by the Secretary of the Government of the Federation (SGF), is up to the tasked.
