Aso Rock in Pandemonium As Reality Sets In, State of Emergency On the nation's economy
There are strong indications that palpable fear has hit the Presidency, following the report from the International Monetary Fund, IMF, that the nation’s economy is going to contract by 1.8 percent this year, after a forecast of 2.3 percent expansion in April this year.
Due to the consistent negative growth the nation has experienced, under the President Muhammadu Buhari-led Federal Government, in the last 2 quarters of 2016, the nation has tactically entered it’s preliminary stage of recession.
According to the IMF, Nigeria’s economy has been battered hard by the plunge in oil prices, which is the main source of the country’s income, as well as prices of other key commodities.
A source close to the President, who anonymous said there are rumours making wave, that Buhari might summon an Economic Summit, where a state of emergency might be declared on the economy.
IMF speaking further said, Nigeria’s economic growth has suffered a combination of plunging oil revenues and weakened investor confidence, which will further push it into recession.
Meanwhile, Financial experts have argued that, despite several alarm raised by the Central Bank of Nigeria, CBN, for the executive to effectively diversify the nation’s economy, all efforts made so far by the President have been done with a pinch of salt.
IMF, expects Africa’s largest economy to contract, while South Africa, is expected to pull down economic growth across sub-Saharan Africa.
In what it termed, “dramatic implication”, the 2016 regional output growth will fall short of population growth, implying declining per capita incomes,” the IMF said.
Aside that, Niger Delta activities in Southern Nigeria have forced crude production cutbacks, and internal unrest, especially attacks by the Boko Haram militants in the North.
It could be recalled, that the National Bureau of Statistic, NBS, in it’s latest report, had decried that the nation’s inflation rate had risen marginally from 15.6 percent in May, to 16.5 percent in June.
Also, the naira is daily plummeting against the dollar, as it is exchanging at N291/$ to a dollar at the inter bank exchange rate, while at the black market, it goes for over N360/$1.
The prices of food stuffs, electricity, fuel and house rents, have all gone up, while the average income of Nigerians have remained stagnant and battered with devaluation, if something drastic is not done to further cushion the effect in the coming weeks, more Nigerians might be subjected to more hardship.
Due to the consistent negative growth the nation has experienced, under the President Muhammadu Buhari-led Federal Government, in the last 2 quarters of 2016, the nation has tactically entered it’s preliminary stage of recession.
According to the IMF, Nigeria’s economy has been battered hard by the plunge in oil prices, which is the main source of the country’s income, as well as prices of other key commodities.
A source close to the President, who anonymous said there are rumours making wave, that Buhari might summon an Economic Summit, where a state of emergency might be declared on the economy.
IMF speaking further said, Nigeria’s economic growth has suffered a combination of plunging oil revenues and weakened investor confidence, which will further push it into recession.
Meanwhile, Financial experts have argued that, despite several alarm raised by the Central Bank of Nigeria, CBN, for the executive to effectively diversify the nation’s economy, all efforts made so far by the President have been done with a pinch of salt.
IMF, expects Africa’s largest economy to contract, while South Africa, is expected to pull down economic growth across sub-Saharan Africa.
In what it termed, “dramatic implication”, the 2016 regional output growth will fall short of population growth, implying declining per capita incomes,” the IMF said.
Aside that, Niger Delta activities in Southern Nigeria have forced crude production cutbacks, and internal unrest, especially attacks by the Boko Haram militants in the North.
It could be recalled, that the National Bureau of Statistic, NBS, in it’s latest report, had decried that the nation’s inflation rate had risen marginally from 15.6 percent in May, to 16.5 percent in June.
Also, the naira is daily plummeting against the dollar, as it is exchanging at N291/$ to a dollar at the inter bank exchange rate, while at the black market, it goes for over N360/$1.
The prices of food stuffs, electricity, fuel and house rents, have all gone up, while the average income of Nigerians have remained stagnant and battered with devaluation, if something drastic is not done to further cushion the effect in the coming weeks, more Nigerians might be subjected to more hardship.
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