- The federal government has urged Nigerians not to lose hope over COVID-19
- Coronavirus has badly affected the world economy including that of Nigeria
- The minister of finance, Zainab Ahmed, said the country would soon bounce back
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Despite the hardship brought by the coronavirus, the Nigerian government has said the country's economy would recover from the effect of the pandemic in the first quarter of 2021.
The Cable reports that the minister of finance, Zainab Ahmed, gave the projection when board members of the Federal Inland Revenue Service (FIRS) paid her a courtesy visit in Abuja.
Legit.ng gathered that there were projections that the economy would slip into its worst recession in 30 years and the second in five years after the 2016 recession.
The online news medium said a report by the National Bureau of Statistics (NBS) showed that Nigeria’s gross domestic product shrunk by 6% in the second quarter of 2020.
The special adviser media and communications to the finance minister, Yunusa Tanko Abdullahi, in a statement, quoted his boss as saying that the economy would recover in Q1 2021.
Ahmed said the prediction is based on the minimal impact of the coronavirus pandemic, urging the FIRS to do more in revenue generation in order to service government debt and implement other government activities.
“The shocks have not manifested as expected and that the pandemic has not impacted much, especially in Nigeria because of the proactive measures taken by the government especially in the health sector.
“We are expecting by the first quarter of 2021, we shall be okay. There are other government obligations and debt servicing which requires revenue to fund and we can see that the capacity to do more is there and we expect you (FIRS) to do more,” she said.
Ahmed added that she is happy that “the FIRS has remained resolute as both value-added tax (VAT) and stamp duty have helped in boosting the revenue.”
Speaking during the meeting, the FIRS chairman, Mohammed Nami, said the agency is doing well and the reforms put in place are generating results as tax revenue has accounted for 70% of funds available to the federation accounts allocation committee in the last three months.
Meanwhile, Legit.ng had previously reported that the Consumer Price Index (CPI) released by the National Bureau of Statistics (NBS) on Tuesday, September 15, said Nigeria's inflation rate hit 13.22% in August 2020.
It was reported that President Buhari called on Nigerians to be patient with the federal government and assured citizens that the prices would drop soon.
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