Nigeria Is Heading Into Recession, Says IMF


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IMF chief, Christine Lagarde


The International Monetary Fund (IMF) slashed its growth forecast for the Nigerian economy this year on Tuesday, saying a combination of plunging oil revenues and weakened investor confidence will push it into recession.
The IMF said it expects Africa’s largest economy to contract by 1.8 percent this year, after having forecast in April a 2.3 percent expansion. Nigeria’s stall, and sluggish activity in the number two economy, South Africa, is expected to pull down economic growth across sub-Saharan Africa, the IMF said, forecasting a “dramatic implication.” “In 2016, regional output growth will fall short of population growth, implying declining per capita incomes,” it said.

Nigeria’s economy has been battered hard by the plunge in oil prices, the main source of the country’s income, as well as prices of other key commodities. In addition, rebels in the southern oil region have forced crude production cutbacks, and internal unrest, especially attacks by the Boko Haram group in the north, has also hurt the economy. Inflation hit an 11-year high of 16.5 percent in June as prices of food and energy jumped after the government freed up the naira currency in April, allowing it to plummet against the US dollar. Also weighing on output have been electricity shortages due to rebels’ sabotage of the gas pipelines that fire power plants.                                                                                             The Sun

3 thoughts on “Nigeria Is Heading Into Recession, Says IMF

  1. Wilson Obukohwo says:

    Honestly,i just don’t understand what is happening,i just can’t make sense of it.Things are getting worse by the day and Buhari remains adamat.I dont know,is it until “everybody” die that he will realizes the situation the country is-the masses is suffering,people is dying & the international community is reacting,yet he don’t give a damn.It is only God that can help Nigerians at this time.No matter what happens,Nigeria will strive & survive but Buhari & his team should wake up to the reality on ground & do something meaningful less he incur the curses of Nigerians.Leadership should be directly answerable to followership,any leadership that damns followership is a bad leadership.The voice of the people is the voice of,God.If the people says no,the no should be respected.In as much as we understand that that you are fighting corruption,the people should be carried along & their feelings respected.How can a leader be so insensitive.

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