The COVID-19 pandemic that led to the collapse in crude oil prices is expected to drown Nigerian economy in massive recession and World Bank says it is the worst since the 1980’s. According to , The World Bank, in a new report, titled ‘Nigeria in times of COVID-19: Laying foundations for a strong recovery,’ estimated that Nigeria’s economy would likely contract by 3.2 per cent this year. “This projection assumes that the spread of COVID-19 in Nigeria is contained by the third quarter of 2020,” it said. The bank said if the spread of the virus become more severe, the economy could contract further. It said, “Before COVID-19, the Nigerian economy was expected to grow by 2.1 per cent in 2020, which means that the pandemic has led to a reduction in growth by more than five percentage points. The report further stated that the coronavirus in Nigeria may push 5 million people into poverty. Overall, 42.5% of Nigerians will be poor – defined as living on less than $2 a day – as of 2020, the bank said. “The macroeconomic impact of the COVID-19 pandemic will likely be significant, even if Nigeria manages to contain the spread of the virus. Oil represents more than 80 per cent of Nigeria’s exports, 30 per cent of its banking-sector credit, and 50 per cent of the overall government revenue.”
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