The presidency has reacted to the Nigeria Bureau of Statistics (NBS) which revealed that the nation recorded a damaging financial progress within the second quarter of 2020.
Recall LIB reported earlier that Nigeria’s financial system contracted by -6.10 per cent within the second quarter of 2020 (April to June), a improvement induced primarily by a few of the measures taken to curb the unfold of Coronavirus within the nation.
Nevertheless in an announcement launched by President Buhari’s spokesperson Femi Adesina, the Presidency averred that even with the damaging progress Nigeria’s financial system outperformed projections by most home and worldwide analysts.
He additionally acknowledged that the Fiscal and Financial Coverage initiatives being deployed by authorities in a phased course of, shall be a strong response to the challenges posed by the COVID-19 pandemic.
Nigeria’s (GDP) declined by –6.10% (year-on-year) in actual phrases within the second quarter of 2020, ending the 3-year pattern of low however constantly enhancing optimistic actual progress charges recorded for the reason that 2016/17 recession. Consequently, for the primary half of 2020, actual GDP declined by –2.18% year-on-year, in contrast with 2.11% recorded within the first half of 2019.
The general decline of -6.1% (for Q2 2020) and -2.18 per cent (for H1 2020) was higher than the projected forecast of -7.24% as estimated by the Nationwide Bureau of Statistics. The determine was additionally comparatively much better than many different international locations recorded throughout the identical quarter.
Moreover, regardless of the noticed contraction in financial exercise in the course of the quarter, it outperformed projections by most home and worldwide analysts. It additionally seems muted in comparison with the outcomes in a number of different international locations, together with giant economies such because the US (-33%), UK (-20%), France (-14%), Germany (-10%), Italy (-12.4%), Canada (-12.0%), Israel (-29%), Japan (-8%), South Africa (projection -20% to -50%), with the notable exception of solely China (+3%).
The federal government’s anticipation of the upcoming financial slowdown and the varied initiatives launched as early responses to cushion the financial and social results of the pandemic, by the Financial Sustainability Programme (ESP), contributed immensely to dampening the severity of the pandemic on progress.
On the fiscal facet, a strong financing mechanism was designed to boost income to assist humanitarian help, along with particular intervention funds for the well being sector.
Changes to the nationwide funds in addition to emergency financing from concessional lending home windows of improvement finance establishments had been important in supporting governments’ capability to satisfy its obligations.
On the financial facet, moratorium on loans, credit score assist to households and industries, regulatory forbearance and focused lending and assure applications by NIRSAL had been a few of the measures applied in response to the pandemic in the course of the second quarter.
It’s equally price noting that for the reason that begin of the third quarter, the phased method to easing the restrictions being applied centrally and throughout States have resulted in a gradual return of financial exercise, together with the potential of worldwide journey.
Extra importantly, the anticipated well being impacts of the pandemic have been managed with out overwhelming the well being infrastructure, which might have additional compromised the power to re-open the nation to journey, commerce and worldwide commerce. Certainly, this has offered better confidence and talent for authorities to provoke the conduct of nationwide terminal examinations and resumption of the subsequent educational yr.
Lastly, it’s anticipated that whereas the third and fourth quarters will mirror continued results of the slowdown, the Fiscal and Financial Coverage initiatives being deployed by authorities in a phased course of shall be a strong response to the challenges posed by the COVID-19 pandemic.
Moreover, because the nation begins the gradual loosening up of restrictions, and ranges of business exercise improve by individuals returning to their varied livelihoods and payrolls broaden, it nonetheless stays crucial that every one the required public well being safeguards are adhered to so the nation avoids an emergence of a second wave.