Nigeria in 6 Charts
Nigeria’s economy went into free fall in Q2 2020 as the coronavirus pandemic worsened and tumbling international oil prices poisoned an already difficult situation. By the end of the second quarter the country’s gross domestic product (GDP), a measure of economic output, shrunk by -6.10% before recovering in Q3 2020 by -3.62%.
The two-quarters of negative GDP growth nudged the economy into an official recession with job loss rates rising and inflation rate scampering.
A few analysts believe that the 2020 economic decline was less severe than would have been the case if the Central Bank of Nigeria (CBN) had not adopted a policy of quantitative easing (QE) and the ministry of finance (MoF) had not permitted a larger-than-expected fiscal deficit. Subsequent information suggests that the CBN had put in the palms of the fiscal authorities a shimmering N2.38trn credit lifeline by its ways and means mechanism, hence leaving the finance authorities with a massive future fiscal funding gap of over N2trn.
The country’s macroeconomic balance can be viewed in six charts and a theory.