( 3 minutes)
· Nigeria’s President Muhammadu Buhari gave the nod to country’s 2021 Budget on New Year’s Eve, amidst the Covid-19 pandemic concerns
· The Budget, which has an outlay 20% higher than the previous one, has set apart Euro 28 billion for development works
· According to the IMF’s forecast a decline in Nigeria’s GDP of 5.4% for 2020 is expected
· However, the government sources point out that contraction would be as high as 8.9%
Nigeria’s President Muhammadu Buhari gave the nod to country’s 2021 Budget on New Year’s Eve, amidst the Covid-19 pandemic concerns. The Budget, which has an outlay 20% higher than the previous one, has set apart Euro 28 billion for development works.
Nigeria’s economy is upfront with a double whammy situation, being squeezed by declining oil prices on the one hand and impact of the Covid-19 pandemic on the oither. The production of oil also has been cut down due to lack of global demand.
Forecast by international agencies about Nigeria’s growth prospects are nothing to talk about. According to the IMF’s forecast a decline in Nigeria’s GDP of 5.4% for 2020 is expected. However, the government sources point out that contraction would be as high as 8.9%. To partly offset the negative impact and to shore up exports from the country, the government has devalued the currency. But, that has led to higher inflation so much so in October last, food prices rose more than 17%.
The World Bank prognostication about the growth of the economy is also not giving any cheer to the West African country. The Coronavirus crisis is expected to push five million more Nigerians into poverty. The inflation may go further up in view of the forthcoming general election.
