The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has urged the Federal Government to enact measures immediately to avoid Nigeria from entering a third recession by the end of 2022, stressing that the nation’s economic development is slowing.
Ide J. C. Udeagbala, National President of NACCIMA, issued the warning yesterday in Lagos at a press briefing to discuss the health of the economy and NACCIMA’s position on issues and policies.
Recall that Nigeria recorded a recession in 2016, followed by a second recession in 2020 occasioned by the COVID-19 pandemic, which caused a significant decline in oil revenues as global economic activities stalled for months.
A recession occurs upon two consecutive quarterly negative growth of Gross Domestic Product (GDP).
Udeagbala noted that the Nigerian economy grew by 3.98% in the fourth quarter of 2021, a drop from 4.03% in the third quarter, and 5.01% in the second quarter of 2021.
His words: “We emphasize this slight but continuous drop in growth rate even as we acknowledge that the Nigerian economy bounced back from the COVID-19 pandemic in the fourth quarter of the year 2020 to reach the peak growth rate for the period, of 5.01% by mid-2021.
“This declining trend is most concerning to us, as we consider that statistics on GDP is three or four months behind the present day, therefore, we estimate that the growth rate of National Output for the first three months of 2022 has decreased further considering the state of conflict in Europe which has had a negative impact on energy and food prices.
“It is the position of our Association that there is a very urgent need for policy implementation to avert a third recession of this decade by the end of 2022, even as the World Bank projects that the Nigerian economy will grow by 4.1% this year.”