Nigeria Employers’ Consultative Association (NECA) has said Nigeria’s economy is projected to contract in the second quarter of 2020 due to the six weeks lockdown on some parts of the country,.
In a statement reacting to the latest Q1 2020 Gross Domestic Product (GDP) report released by National Bureau of Statistics (NBS) which said that Nigeria’s economy grew by 1.87%, NECA said the real impact of COVID-19 on the economy would be felt in the Q2 GDP result due to the commencement of the lockdown in April.
It stated that the slowdown in the GDP growth reflects the earliest effects of the disruptions on non-oil economy, coupled with an escalating war of words between the U.S. and China which resulted into low demand in global oil.
The lockdown of the Nigerian economy commenced in April due to the pandemic, therefore, the real impact of COVID-19 on the economy would be felt in the Q2 GDP result.
The employers association called for more fiscal and monetary policies aimed at boosting non-oil sector to help salvage the economy from external shocks.
Nigeria’s non-oil sector grew by 1.55% in real terms in the first quarter of 2020, but was slower by –0.93% point’s year on year.