On Friday in Kaduna, some economic experts expressed opposing views on the likelihood of Nigeria entering a recession. The experts discussed the current global economic challenges caused by various factors.
The analysts said that the state of health of the country's economy could have been more exciting.
Experts Debate the probability Of Recession In Nigeria
They, therefore, urged the FG and all stakeholders to double efforts in struggling to move Nigeria from its present position to the type all citizens dream of.
Even though there is a supposed light at the end of the tunnel, Nigeria was likely to experience a recession, according to Mr. Yusuf Goje, a finance analyst.
Mr. Goje listed the danger signals that influenced his decision, including a drop in oil production, price, and inflation in the country.
Insecurity, natural disasters such as floods, depleting foreign reserves, and high debt servicing, among other factors, were further straining the economy and slowing the nation's growth.
Additionally, he noted that as of October 10, the nation's crude oil production dropped from 1.24 million barrels to 937,766 barrels daily in July.
He continued by saying that the nation's economic situation had been further weakened by the falling international oil prices, making it highly vulnerable to shocks to the economy.
He characterized the development as a severe problem, given that oil is the nation's primary income source. Furthermore, Mr. Goje claims that the government is not protected from economic shocks. Regardless of how minor, he continued, any surprises could easily cause Nigeria to enter a recession.
He warned that apart from the fall in oil production and the dwindling price, there is also the problem of depleting foreign reserves, with the high exchange rate, about the Dollar.
He also said a substantial amount of the country's budget is going to debt servicing, just as Nigeria is experiencing disturbing spiral inflation.
On the contrary, Dr. Peter Adamu, an economist at Kaduna State University (KASU), told NAN that a recession is unlikely anytime soon, given the country's GDP growth rate.
Dr. Adamu explained that a nation would have to experience negative growth for six months before it can be considered a recession.
He insisted the recent data by the Nigeria Bureau of Statistics (NBS) shows a positive side of growth, suggesting that recession is not likely to happen anytime soon.
He said that insecurity and flooding were taking their toll on the economy. He stressed that the government must do something to address these challenges to avert further weakening of the economy.
