A forecast by the International Monetary Fund (IMF) in April predicting a 3.4% contraction of the Nigerian economy has now been downgraded.
The economy is now expected to shrink by 5.4%, according to the international lender’s latest forecast.
The IMF says Covid-19 has had more negative impact on global economic activities in the first quarter of 2020 than anticipated. It’s latest forecast is contained in its June World Economic Outlook.
Commercial activities are still not fully open in Nigeria while the aviation industry is still on lockdown as the country’s Covid-19 cases rose to 22,020 on Wednesday.
The oil industry which has been the main sustenance of the Nigerian government lost $125bn (£100bn) of its projected revenue in the first quarter of 2020. The government says it feared at least 70% of its oil revenue would be lost by the end of 2020.