Nigeria: “The latest recession in Nigeria will be short-lived," says Lai Mohammed on country's growth

“The latest recession in Nigeria will be short-lived, and Nigeria will return to positive growth soon, unlike the 2016 recession which lasted five quarters. This is because of several complementary fiscal, real sector and monetary interventions proactively introduced by the government to forestall a far worse decline of the economy and alleviate the negative consequences of the pandemic".He mentioned that the country has recorded positive economic growths in the year 2020, which is likely "to have been overshadowed by the country’s economic recession."

Nigeria's recent recession would be short-lived, stated the Federal Government of Nigeria, according to a report by Nairametrics.

The country in 2020 recorded a decline in the Gross Domestic Product in real value by minus(-) 3.62% (year-on-year) in the third quarter (Q3) of 2020. Marking the economy in a full-blown recession while second straight contraction from minus(-) 6.10% recorded in the second (Q2) quarter, it reported.

On which the Federal Government stated that the country would revive from the current recession to the recession in 2016.

The statement was signed by Lai Mohammed, the Minister of Information and Culture, earlier on Monday. Mohammed said, “the latest recession in Nigeria will be short-lived, and Nigeria will return to positive growth soon, unlike the 2016 recession which lasted five quarters. This is because of several complementary fiscal, real sector and monetary interventions proactively introduced by the government to forestall a far worse decline of the economy and alleviate the negative consequences of the pandemic".He mentioned that the country has recorded positive economic growths in the year 2020, which is likely "to have been overshadowed by the country’s economic recession".

Mohammed also mentioned that the Covid-19 pandemic was the reason for Nigeria’s slump in its third-quarter. “The main reason for this is Covid-19 pandemic. Nigeria is not alone. Dozens of countries, including economic giants like the US, UK and Canada, have entered recession, of course due to the global pandemic. Others include Austria, Belgium, Denmark, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Mexico, Netherlands, Norway, Romania, Russia and Spain", he added.

Mohammed also stated that the recession had “masked postitive economic development,” quoting the National Bureau of Statistics.

"The decline of -3.62% in Q3 is much smaller than the -6.10% recorded in Q2. The economic conditions are actually improving, with 17 activities recording positive real growth in the third quarter, compared to 13 in Q2,” Mohammed said.