The World Bank says collapse in oil prices coupled with the COVID-19 pandemic is expected to plunge the Nigerian economy into a severe economic recession, the worst since the 1980s.
The World Bank made this known in a statement in Abuja on Thursday as part of its latest Nigeria Development Update (NDU).
The bank said the report indicated that Nigeria in Times of COVID-19: Laying Foundations for a Strong Recovery, estimated that the country’s economy would likely contract by 3.2 percent in 2020.
It stated that this projection assumed that the spread of COVID-19 in Nigeria would be contained by the third quarter of 2020.
It, however, noted that If the spread of the virus became more severe, the economy could contract further, adding that before COVID-19, the Nigerian economy was expected to grow by 2.1 percent in 2020, which means that the pandemic had led to a reduction in growth by more than five percentage points.