According to the Minister of Information and Culture, Lai Mohammed, “The Nigerian economy is doing well compared to the economies of South Africa, Russia and other countries in recession.”
He said the current recession is inevitable because of the global collapse in oil prices which was caused by the coronavirus pandemic.
The minister spoke on Wednesday on the National Television Authority Good Morning Nigeria Show.
In recent times, reports pertaining the growth of the nation’s economy suggested that amid a rising debt profile, inflation and unemployment, the Nigerian economy diminished again in the third quarter of this year.
The data collected from the World Bank suggests that this year’s recession is the worst in the past 36 years. The report also indicates that the country’s Gross Domestic Product dropped by 10.92 per cent in 1983 and 1.2 per cent in 1984.
Also judging from the reports of The National Bureau of Statistics released for the third quarter of 2020, the GDP, which is the broadest measure of economic prosperity, dropped by 3.62 per cent in the three months up till September.
Speaking with optimism today, the minister mentioned that the Federal government has several intervention measures that are sure to make this recession a short one.
Mohammed said, “It is true we are in a recession. Recession comes when a country records two consecutive quarters of negative growths. But we must go beyond that to understand that despite that, our economy is still very well in circumstances.”
“The main reason why we have entered into this recession is the oil sector. The oil sector recorded -13.89% and that is the worst in 14 quarters. Of course, it is easy to understand why; with the pandemic, there is low demand for oil…but when you look at the non-oil sector which is about -2.51 % in Q3, it is far better than what it was in the Q2.”
READ ALSO: EXCHANGE RATE POUNDS TO NAIRA.
“Overall, yes, we are in a recession and it is inevitable but while our Q2 result was -6.1%, South Africa was -50% and as we speak today, Finland, Hungary, Spain, Mexico, Russia, Romania, Belgium, Austria have all fallen into recession.”
“But we are very confident that with the intervention policies, with the fiscal and monetary interventions the government has put in place, the recession will be short-lived.”
ALSO ON ABOKIFX RATE: POUNDS NAIRA EXCHANGE RATE.