The World Bank has said Nigeria may experience its worst recession in 20 years as it advised that it was critical to sustain and deepen its reforms to avoid the worsening impact of COVID-19 on the economy.
In a press release on Thursday titled, ‘Sustaining and deepening policy reforms is critical to mitigate the COVID-19 crisis in Nigeria, says New World Bank Report,’ the World Bank said:
In the next three years, an average Nigerian could see a reversal of decades of economic growth and the country could enter its deepest recession since the 1980s.
The latest World Bank Nigeria Development Update argues that this path could be avoided if progress in the current reforms is sustained and the right mix of policy measures is implemented.”
It added that the report “Rising to the challenge: Nigeria’s COVID response,” took stock on the recently implemented reforms and proposed policy options to mitigate the impact of COVID-19 and foster a resilient, sustainable, and inclusive recovery.
Shubham Chaudhuri, the World Bank Country Director for Nigeria, said:
Nigeria is at a critical historical juncture, with a choice to make.
Nigeria can choose to break decisively from business-as-usual, and rise to its considerable potential by sustaining the bold reforms that have been taken thus far and going even further and with an even greater sense of urgency to promote faster and more inclusive economic growth.
Nigeria has slipped into a recession after its gross domestic product contracted for the second consecutive quarter.
Africa’s biggest economy is in recession for the first time since 2016. The recession four years ago was its first in a generation, and the country emerged from it the following year.
Nigeria’s Minister of Finance, Ahmed Zainab, however, projected that Nigeria will be out of recession by the first quarter of 2021.