Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 43)

The International Monetary Fund (IMF) has projected that the GDP growth for Nigeria will shrink to -4.3 percent at the end of 2020 from 2.2 percent in 2019.1  The negative growth forecast is attributed to fall in oil prices, coupled with a reduction in crude oil production due to production cut agreement by Organization of Petroleum Exporting Countries and other major oil producers (OPEC+). Also, the decline in domestic demand owing to the lockdown is another driver of the negative outlook. Growth is however projected to rebound in 2021 at 1.7 percent, when crude oil price and production increases. The pandemic has exposed the vulnerabilities of Nigeria‚Äôs mono-product economy and emphasized the need for diversifying the revenue base of the economy. Efforts towards boosting the performance of non-oil sectors such as agriculture, mining and entertainment should be increased and time-sensitive.

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