By: Economic & Finance Report
One of the biggest economies in Africa has recently hit recession. The GDP fell over 2% in the second quarter of 2016. The International Monetary Fund believes Nigeria will see negative -1.8% in its real GDP for the rest of the 2016 year.
The recession in Nigeria may be the very worst to hit the country since the 1980s, probably as bad as 1987. Nigeria Finance Ministry has indicated that Nigeria will borrow close to 10 billion dollars USD, which over $5 billion dollars USD being borrowed from foreign lenders. The government has indicated the money borrowed will be used on domestic projects such as power, agriculture, mineral and infrastructure development.
It is also to be noted, that Nigeria’s service sectors represents about 50% of the country’s GDP to date. The service sector in Nigeria will have to take the lead in developing jobs and other attributable assets, to get Nigeria growing and prospering from its recession. -SB