Finance minister, Zainab Ahmed has said the fall in oil price has collapse economy.
Ms. Ahmed made the statement at the National Economic Summit in Abuja on Thursday.
She said the COVID-19 pandemic has negatively affect the price of oil and is leading the country until another recession.
“On the economy, COVID-19 has resulted in the collapse in oil prices,” she said. “This will impact negatively, and the 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.”
She said the fall in oil price has collapse economy, adding that the economic contraction will multiply the misery of the poor.
Giving the analysis, Ahmed said the GDP, which is the economic growth in Nigeria could fall by about -8.94% in the worst case.
However, if things turn out well, it could only fall for about -4.4% without fiscal stimulus.
She therefore added that the government is actively working on achieving the later GDP in Nigeria.
Nevertheless, with the fiscal stimulus plan the government is working on, she said, the contraction can be mitigated and the country end up with -0.59%.