April 29 (Lagos) - Governor of Zamfara state in North has warned of yet another recession in Nigeria in Mid 2020 which will last until Q3 2021.
His concerns could be founded on Nigeria's weak foreign reserves and the high cost of running the Government. The Federal Government keeps borrowing money to service its debt and that is a worrying signal for any country. There is not much hope here because expecting lawmakers to reduce their own salaries and expenses is something only a fool would bet on. For example the budget of National Assembly is still not public. Public meanwhile is in a state of apathy and helplessly watch their politicians live a life of luxury.
Nigeria's currency is another major problem and it is related to weak foreign reserves.
On the positive side, the oil price has climbed up to $75 a barrel and can support the foreign reserves if they are managed professionally. As long as oil prices remain at current levels there should not be a recession in Nigeria but the Governor may have knowledge of some facts which are not known to public and hence he has issued this warning.
The stock market has already sold off sharply and does not seem to have found a bottom yet as weak results from bell weather stock
DANGCEM disappointed over the weekend. Major declines in blue chip stocks like
GUINNESS ,
NB and
UNILEVER have also contributed to the sell off.
reporting for easykobo.com on Monday, April 29 2019 from Lagos, Nigeria