· Nigeria’s GDP is estimated to contract by 6.91 per cent in the fourth quarter of 2020.
· The cumulative effect on the 2020 fiscal year is projected to be negative growth of 4.15 per cent against the previous forecast of -3.32 per cent.
Faced with the twin challenges of the Pandemic and SARS protests, Nigeria’s GDP is estimated to contract by 6.91 per cent in the fourth quarter of 2020, according to Cordros Research. The prediction is based on the current scenario of SARS protests and the curfews going beyond October. The cumulative effect on the 2020 fiscal year is projected to be negative growth of 4.15 per cent against the previous forecast of -3.32 per cent.
The economic activities in the country have come to a standstill due to protests across the country against police brutality and the excesses of the Special Anti-Robbery Squad (SARS). In many parts of the country, the protests have been hijacked by anti-social elements, resulting in destruction of public properties, forcing state governments to impose curfews. The development has aggravated the challenges of Nigerian economy which is already in turbulence with issues like Foreign exchange constraints, compliance with OPEC oil production cuts and general low level of business activities
The Cordros analysts pointed out that the fall in revenue since the onset of COVID-19 had continued to impact the Federal Government’s fiscal operations. The weak revenue profile is bound to constrain fiscal spending, leading to a wider fiscal deficit to be financed by borrowings.
In another development, Access Bank Nigeria Plc has announced N50bn through interest-free loans and grants to support communities, youths and Micro, Small and Medium Enterprises (MSMEs). The Bank’s statement said that the move was in line with their commitment to impact lives positively. In the light of the recent challenges faced by Nigerians.
