- Nigerian Economy May Contract by 3.4% Without Stimulus – Ahmed
Nigeria, Africa’s largest economy and the most populous black nation, may plunge into an economic recession without a well planned economic stimulus, according to the Minister of Finance, Zainab Ahmed.
The minister, who was on Arise Tv earlier today, said without an economic stimulus put in place, the nation’s economy may contract as much as 3.4 percent this year.
“Nigeria needs radical action to avoid an economic contraction,” said Ahmed, who added that “the country’s multilateral creditors were considering suspending debt repayments to help.”
The coronavirus pandemic had eroded Nigeria’s revenue generation and plunged the nation’s foreign reserves by the most in recent months, leaving Nigeria with little to zero fiscal space to cushion the economy.
Nigeria and other African nations have approached multilateral creditors for debt relief to allow them enough fiscal buffer to curb the impact of COVID-19 and protect about 30 million jobs on the continent.
However, experts have said African nations may struggle to get assistance due to their huge debts, poor economic policies and surged in capital flights that have rendered most of the nations vulnerable to external shock.
African nations and other emerging economies are expected to face tougher economic challenges this year as they struggle to meet financial obligations amid limited resources.