CBN Optimistic Nigeria To Exit Recession Q1, 2021

Yemisi Izuora 

The Central Bank of Nigeria (CBN) has expressed optimism that Nigeria would emerge from its current recession in the first quarter of 2021.

Governor of the bank, Godwin Emefiele, who displayed this rare optimism on Friday during the 55th annual Bankers Dinner which held in Lagos, said that the expected economic growth was two per cent.

According to him, “With the sustained implementation of our intervention measures, we do expect that the Nigerian economy could emerge from the recession by the first quarter of 2021,” he said.

“We also expect that growth in 2021 would attain 2.0 per cent. However, downside risks remain, as restoration of full economic activities, particularly in service-related sectors, remains uncertain until a COVID vaccine is produced and made available to millions of people across the world.

“Second, with the significant rise in cases in advanced markets and the imposition of lockdowns in parts of Europe, concerns remain on the impact this could have on growth in advanced economies, commodity prices and the financial markets.”

The CBN governor also called for measures to “insulate our economy from the impact of these shocks through our diversification efforts, while also working to ensure that we adhere to safety protocols in order to prevent a surge in COVID-19 related cases, as this could further cripple economic activities.

“Our actions in 2021 would be guided by the considerations that emerged from the Monetary Policy Committee meeting of November 23 & 24, 2020, which sought to address the major headwinds exerting downward pressure on output growth and upward pressure on domestic prices.”

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