Author: Lukman Otunuga

Research Analyst at FXTM

Nigeria’s monetary and fiscal policymakers face enormous challenges as the country stares a looming technical recession in the face just three years after the last downturn in 2017.  The COVID-19 pandemic circumstances have combined with low Oil demand and prices to brew up a perfect storm. Buffeted by the strong headwinds, Nigeria’s second-quarter GDP shrank by 6.1 per cent, the biggest drop since 2004. Government revenues which rely on Oil sales shrank along with the demand for crude Oil. Besides that, low Oil prices may pressure foreign exchange earnings and reserves, as 90 per cent of Nigeria’s currency earnings stem…

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