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Rising To The Challenge
Rising To The Challenge
In 2020, Nigeria’s economy is expected to experience its deepest recession since the 1980s due to the
COVID-19-related disruptions notably lower oil prices and remittances, enhanced risk aversion in global
capital markets, and mobility restrictions; this article opines.
i Oil and government revenues: Nigeria's oil sector has a direct impact on economic
activity, jobs, government revenues, investment, and credit growth, and consolidated
government revenues are projected to drop by US$10 billion or more in 2020.
iii Capital flows: Foreign portfolio investments have decreased, putting pressure on
Nigeria's external reserves and exchange rates.
v Prices: Rising food prices, conflicts, and pandemic-related disruptions caused inflation
before COVID-19.
vi Job: Unemployed workers have shifted to the agricultural sector, leading to increased
economic precarity and food insecurity.
vii Poverty: Nigeria's extreme poverty rate is expected to rise by 15-20 million by 2022,
with human and economic costs.
Summarily, Nigeria's oil sector has a direct impact on economic activity, jobs, government
revenues, investment, and credit growth, and consolidated government revenues are projected
to drop by US$10 billion or more in 2020. Remittances have declined, capital flows have
decreased, mobility restrictions have reduced employment and income, and prices have caused
inflation. Poverty is expected to rise by 15-20 million by 2022.