Nigeria has been predicted to possibly be heading towards its worst recession in 2020, by the International Monetary Fund (IMF).
These predictions and fears are being heightened over how the economy would look, following the COVID-19 pandemic.
In a recent decision by the Organisation of Petroleum Exporting Countries (OPEC), Nigeria is to curtail its crude oil production by 9.7 million per day.
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Prior to this cut in oil production figures, the country had slashed its 2020 oil price budget benchmark from $57 per barrel to $25, in order to adjust with the drop in global oil prices, now trading a bit over $30 per barrel.
Following the OPEC deal to cut members’ production quota, the Minister of State for Petroleum Resources, Timipreye Sylva, said Nigeria’s daily production volume was cut from 2.18 million barrels to 1.70 million.
The decline in oil prices has definitely affected all facets of the Nigerian economy, as the Federal Government cut down on capital expenditure. The Federal Government has also reached out to the IMF to draw-down its $3.4bn savings, and is seeking more support from multilateral agencies.
