Tue. May 18th, 2021

Business and Economy News

For Business and Economy News, here is Correspondent, Chimere Onyeama.

Nigeria may be warming up for a debt repayment relief as there are strong indications that the World Bank Group and the International Monetary Fund, IMF, would recommend to the G20, an extension of the Debt Service Suspension Initiative  (DSSI) by Low-Income Countries until the end of 2021.

According to reports, Nigeria is currently owing the two Institutions about fourteen billion USD while the 2021 budget has projected to spend as much as three point twelve trillion in debt servicing during the fiscal year.

Nigeria may be losing over five four point two 54.2 trillion yearly due to poor privatization deals, closures and total neglect of the Nation’s Metal Industries.

Chief Co-ordinator, Institute of Chartered Economists of Nigeria, Friday Udoh, who make the revelation also noted that the proposed commercialization of Aluminum Smelter Company of Nigeria, ALSCON, in Ikot Abasi, Akwa Ibom State, is likely to threaten the recovery of these metals capped production capacity.

The World Bank has stated that Nigeria moved out of recession faster than its forecasts had predicted.

Following a six point one percent year-on-year contraction in second quarter 2020, Nigeria’s economy contracted by three point six percent in the third quarter of 2020 and expanded by zero point one percent in the fourth quarter of same year, thereby moving out of recession faster than expected.

Meanwhile, the Bank said it expects Nigeria’s economy to grow by one point four percent in 2021 as the Country continues to recover.

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