As Covid-19 pandemic continue to push hard across the globe, Nigeria is not left out.The country Consumer Price Index, which measures inflation rate, rose from 12.26 percent year-on-year in the month of March to 12.34 percent in April during the COVID-19 lockdown, according to the National Bureau of Statistics (NBS) report released on Thursday.
The gauge of food prices, food index, rose from 14.98 percent year-on-year in March to 15.03 percent in April.
On a monthly basis, prices of food increased by 1.18 percent in April, higher than the 0.94 percent recorded in the previous month.
This was attributed to the surge in prices of Potatoes, Yam and other tubers, Bread and cereals, Fish, Oils and fats, Meat, Fruits and Vegetables.
Nigeria is heading towards recession due to the coronavirus pandemic and falling oil prices.
Minister of Finance, Zainab Ahmed revealed that Covid-19 impact has already started showing on the federation’s revenues and on the foreign exchange earnings.
Net oil and gas revenue and influx to the federation account in the first quarter of 2020 amounted to N940.91billion. This represented a shortfall of N125. 52billion or 31% of the prorated amount that is supposed to have been realized by the end of that first quarter.”
The crisis will only multiply this misery. The economic growth in Nigeria, that is the GDP, could in the worst case scenario, contract by as much as –8.94% in 2020.
But in the best case, which is the case we are working on, it could be a contraction of –4.4%, if there is no fiscal stimulus. But with the fiscal stimulus plan that we are working on, this contraction can be mitigated and we might end up with a negative –0.59%.
International Monetary Fund predict that Africa’s largest economy Nigeria is projected to decline by 3.4 percent due to decline in global oil market price.