The Federal Government says unless the country achieves a strong third quarter economic performance in 2020, the country stands the risk of going into a second recession with significant adverse consequences.
The government also warns that Nigeria faces signiﬁcant medium-term ﬁscal challenges, especially with respect to its revenues, which if not immediately addressed could snowball into a debt sustainability crisis.
The Minister of state for Finance, Budget and National Planning, Mr Clement Agba said this while speaking at an interactive session with the House of Representatives joint committees on Finance, Appropriation, Budget and Economic Development as well as Loans, Debt Management.
Mr Agba who represented the Minister for Finance, Budget and National Planning, Zainab Ahmed, said Nigeria is currently exposed to spikes in risk aversion in the global capital markets, which will put further pressure on the foreign exchange market as foreign portfolio investors exit the Nigerian market.
He said that the Nigerian economy faced serious challenges in the first half of 2020 with the microeconomic environment signiﬁcantly disrupted by the COVID-19 pandemic.
Mr Agba, explained further that fiscal measures are being instituted to improve government revenue and entrench a regime of prudence with emphasis on achieving value for money aimed at keeping the economy active through carefully calibrated regulatory/policy measures designed to boost domestic value addition, de—risk the enterprise environment, attract external investment and sources of funding, among others.