The Governor of the Central Bank of Nigeria (CBN) Mr. Godwin Emefiele, has allayed the circulating fears that the Nigerian economy is heading for recession owing to the declining revenue that arose from low oil prices for over a year.
Emefiele, while speaking at the end of the IMF/World Bank annual meetings in Peru, on October 11, 2015 remarked that the current drop in the nation’s revenue was a global occurrence, as such, is not peculiar to Nigeria.
He stated that some of the recent policies of the Central Bank was a symptom of an economy sliding into recession, remarking that the task before Nigerians is to accept the policies as a means of reversing declining revenue.
He said “Nigeria is not sliding into recession. We have had two quarters of slow growth; even the global economy has revised its growth outlook from 3.8 per cent in April to three per cent at this meeting. That of Africa has been revised from five per cent to 3.75 per cent at this meeting. But it is even projected at 4.25 per cent in 2016. So everyone is affected. What we are saying is because we have seen two successive quarters of slow growth, we all need to embrace the policies that we are putting in place both by the monetary and fiscal authorities so that we can see a reversal, so that we can see increased growth, not slowing growth, so no one has talked about the fact that Nigeria is going into recession. We are only saying we need to work hard to begin to reverse the trend so that we can move towards positive growth rather than slowing growth.”
The apex bank governor also pointed out that the slowdown as a result of the drop in prices of commodities coincided with the end of quantitative easing in the United States to the extent that the Federal Reserve Bank has been contemplating raising rates via the sale of assets.