08 October 2020 by James Itodo…
Strong indication emerged Thursday that Nigerian economy may slide into recession again as Gross Domestic Product ( GDP) growth rate, has remained in the negative since the first quarter of the year .
This is as Ministries of Defence , Education, Police, Works etc, got the lion shares of the N13.08 trillion 2021 budget presented to joint session of the National Assembly by President Muhamnadu Buhari this Thursday.
President Buhari in the budget presentation lamented that since GDP growth rate has been in the negative since the first quarter of the year up to the just ended third quarter, Nigeria may slide into another recession again four years after the first occurrence.
” The Nigerian economy is currently facing serious challenges, with the macroeconomic environment being significantly disrupted by the Coronavirus Pandemic.
Real Gross Domestic Product (‘GDP’) growth declined by 6.1 percent in the second quarter of 2020.
” This ended the 3-year trend of positive, but modest, real GDP growth recorded since the second quarter of 2017.
“GDP growth is projected to be negative in the third quarter of this year. As such, our economy may lapse into the second recession in four years, with significant adverse consequences”, he said .
He however assured Nigerians that strategic efforts are being made to insulate the Nigerian economy from consequences of such recession .
” We are working assiduously to ensure a rapid recovery in 2021. We remain committed to implementing programmes to lift 100 million Nigerians out of poverty over the next 10 years” ,. he said .
President Buhari in the budget christened ” Budget of Economic Recovery and Resilience “, said parameters upon which it is based are $40 per barrel oil price benchmark , 1.86million barrel oil per day , N379 to a US dollar exchange rate , GDP growth rate of 3% and Inflation growth rate of 11.59%.