Minister of Finance, Zainab Ahmed, said yesterday that unless Nigeria achieves a very strong third quarter 2020 economic performance, the country may slide into recession.
Ahmed disclosed this at the opening of a five-day interactive session on the 2021-2023 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper (FSP), held in Abuja yesterday.The interactive session, according to online platform, The Cable, was organised by the house of representatives committee on finance, chaired by James Faleke, lawmaker representing Ikeja federal constituency. Ahmed, who was represented by Clement Agba, the minister of state for finance, said the COVID-19 pandemic had put further pressure on Nigeria’s foreign exchange.
“Nigeria is exposed to spikes in risk aversion in the global capital market, which will put further pressure on the foreign exchange market as foreign portfolio investors exit the Nigerian market,” the minister said.
“Nigeria’s Q2 GDP growth is in all likelihood negative and unless we achieve a very strong Q3 2020 economic performance, the Nigerian economy is likely to lapse into a second recession in four years with significant adverse consequences.
“In response to the developments affecting the supply of foreign exchange to the economy, the Central Bank of Nigeria (CBN) adjusted the official exchange rate to N360, and more recently to N379.”
The minister added that the disruptions in global trade and logistics would also negatively affect customs duty collections in 2020.
According to her, COVID-19 containment measures, although necessary, have inhibited domestic economic activities, with consequential negative impact on taxation and other government revenues.
“Consequently, the projections for customs duty, stamp duty, value-added tax, and company income tax revenues were recently reviewed downwards in the revised 2020 budget,” she said.
“Customs revenue has generally performed close to target over the last few years, exceeding target in 2019.
“There has been some improvement in company income tax and VAT remittances; we expect significant improvements in VAT collections with the new VAT rate of 7.5 per cent.”
The minister said actual revenue performance averaged 61.4 percent over the past five years, noting that some reforms were yielding positive results, with significant improvements between 2018 and 2019.
“I believe we can do more to improve revenues, especially remittances from government-owned enterprises, possibly up to N1 trillion annually,” she added.
“Support of the national assembly, by ensuring coordinated oversight, will contribute to achieving targets.”
Search The Poise
Promote Your Music
Recent Posts On The Poise
- Buhari can deploy force to restore law and order – Tinubu
- “It is time to retreat to avoid hijacking” – Ooni of Ife Pleads to Protesters
- Police plan mass arrest of #EndSARS protesters in Abuja Sources Say
- NCDC Confirms 118 New COVID-19 Cases In Nigeria
- Buhari Sacks Nigerian Copyright Commission Board Chairman, Tonye Jaja
- Three killed, property destroyed as thugs descend on #EndSARS protesters in Abuja
- The 1999 Constitution remains a fraud and should be revoked – Nwakaeti
- Super Eagles wait on NFF for venue as camp opens November 9
- Watch Burna Boy & Tiwa Savage Performance at 1Xtra Live
- #EndSARS Protesters storm Lagos airport
Top Posts & Pages
Entertainment News3 years ago
Justin Bieber & Selena Gomez Have Started Hanging Out Again
Articles3 years ago
Marcus Rashford’s Girlfriend Lucia Loi
Photos3 years ago
Leroy Sane’s Girlfriend Candice Brook
Celebrities2 years ago
David Beckham Allegedly Got His Daughter’s Teacher Pregnant
News2 years ago
Nigeria Gets Fresh $200m Loan To Finance Electricity Projects
Celebrities3 years ago
Jesse Lingard Breaks Up With Girlfriend Jena Frumes
Sport2 years ago
Bournemouth Signs Liverpool Defender Nathaniel Clyne On Loan
Entertainment News3 years ago
Top 10 Sexiest Young Female Celebrities in The World