The World Bank has urged Nigerians to brace for the worst recession since the 1980s.
According to the global bank, the twin calamities of collapse in oil prices and COVID-19 pandemic are expected to plunge the economy into a severe economic recession.
The World Bank, in its World Bank Nigeria Development Update (NDU) report, entitled: “Nigeria in times of COVID-19: Laying foundations for a strong recovery,” predicted that the country’s economy would likely contract by 3.2 per cent in the year.
This is based on the assumption that “the spread of COVID-19 in Nigeria is contained by the third quarter of 2020”.
The World Bank also warned that “if the spread of the virus becomes more severe, the economy could contract further”.
It would be recalled that before pandemic broke out, Nigeria’s economy was projected to grow by 2.1 per cent in the year. This means that “the pandemic has led to a reduction in growth by more than five percentage points,” the World Bank report said.
The Bretton Woods institution noted: “The macroeconomic impact of the COVID-19 pandemic will likely be significant, even if Nigeria manages to contain the spread of the virus.”