The World Bank, in a new report, titled ‘Nigeria in times of COVID-19: Laying foundations for a strong recovery,’ estimated that Nigeria’s economy would likely contract by three point two per cent this year.
The bank said if the spread of the virus became more severe, Nigeria’s economy could contract further.
The report says before COVID-19, the Nigerian economy was expected to grow by two point one per cent in 2020, which means that the pandemic has led to a reduction in growth by more than five percentage points.
According to the report, with the drop in oil prices, government revenues are expected to fall from an already low eight per cent of GDP in 2019 to a projected five per cent in 2020.
The Country Director for Nigeria, World Bank, Shubham Chauhuri, said while the long-term economic impact of the global pandemic is uncertain, the effectiveness of the government’s response is important to determine the speed, quality, and sustainability of Nigeria’s economic recovery.
