FG fears the worst, says economy to shrink by -8.9% in 2020

As the disruptions of the global economic system by the COVID-19 continues to create anxieties in governments globally, the Federal Government on Thursday revised downward its growth projections for the economy, saying the economy could shrink as much as -8.9% in this fiscal year.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, gave the latest forecast during the National Economic Council meeting held at the Presidential Villa, Abuja.

Ahmed told the State Governors who are the NEC members at the meeting presided over by the Vice President, Prof. Yemi Osinbajo, that in a best case, without any fiscal measures, that the contraction could reach -4.4%,.

With crude oil prices plunging into lowest level at the international market over the past few months due to the coronavirus pandemic, the Nigerian government has been troubled as crude exports account for over 80 percent of the nation’s foreign exchange earnings on yearly basis.