The World Bank revealed Nigeria is expected to face it’s worst recession in 40 years due to the Covid-19 pandemic affecting oil prices and reducing government revenues in its Nigeria Development Update report.
The Bank expects Nigeria’s economy to dip by 3.2% in 2020 if the country contains the spread of the virus. If the virus is not contained by 3Q 2020, the Bank says the Economic decline will continue.
The report says: ” The macroeconomic impact of the Covid-19 pandemic will likely be significant, even if Nigeria manages to contain the spread of the virus. Oil represents more than 80% of Nigeria’s exports, 30% of its banking sector credit and 50% of the overall government revenues are expected to fall from an already low 8% GDP in 2019 to a projected 5% in 2020″.
World Bank Country Director for Nigeria, Shubham Chaudhuri said the economic impacts of the Pandemic is uncertain, effective response but the government will determine the speed of Nigeria’s response.
” Besides immediate efforts to contain the spread of Covid-19 and stimulate the economy, it will be even more urgent to address bottlenecks that hinder the productivity of the economy and job creation” he added.
World Bank projects 5 more million Nigerians will fall bellow the poverty line in 2020, rising Nigeria’s poverty rate from 40.1% in 2019 to 42.5% in 2020.