International Monetary Fund (IMF) has projected a significant economic contraction for Nigeria, with GDP seen falling 5.4% this year after an earlier forecast for a 3.4% contraction.
Nigeria faces economic distress not only from the coronavirus outbreak but also from a sharp fall in crude oil prices, the IMF said in its World Economic Outlook update on Wednesday
Nigeria’s government has said it expects its economy to contract by 3.4% this year. However, last month the finance minister said the economy could shrink by as much as 8.9% in 2020 in a worst-case scenario.
Meanwhile, the cost of living in Nigeria has risen steadily. Annual inflation rose for the ninth straight month in May, to 25-month high of 12.4%.
Sub-Saharan Africa’s gross domestic product is expected to shrink by 3.2% this year due to the impact of the COVID-19 pandemic.