The Federal Government has said that Nigeria’s economy will recover from the effect of the COVID-19 pandemic in the first quarter of 2021.

This statement comes in alignment with the prediction of several analysts who believe that the recovery may have even begun as they project that the huge fall in the nation’s Gross Domestic Product, GDP, at -6.1 percent in the second quarter of 2020, Q2’20, would be moderated in the third quarter, Q3’20. They added that the figures would still be negative while effectively placing the economy in recession.

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, made the government’s projection known when board members of the Federal Inland Revenue Service (FIRS) paid her a courtesy visit in Abuja, and said the prediction is based on “the minimal impact of the pandemic”.

 In a statement signed by Yunusa Tanko Abdullahi, Special Adviser, Media and Communications to the Finance Minister, Mrs Ahmed charged the FIRS to intensify efforts in revenue generation so as to service government debt and execute other government economic recovery activities.

“The shocks have not manifested as expected and the pandemic has not impacted much, especially in Nigeria because of the proactive measures taken by the government especially in the health sector.

“We are expecting by the first quarter of 2021, we shall be okay. There are other government obligations and debt servicing which requires revenue to fund and we can see that the capacity to do more is there and we expect you (FIRS) to do more,” the statement said.

Ahmed however said that she is happy that “FIRS has remained resolute as both value-added tax (VAT) and stamp duty have helped in boosting the revenue”.

There are predictions that the economy will slide into its worst recession in 30 years and the second in 5 years after the 2016 recession and a report by the National Bureau of Statistics (NBS) had shown that Nigeria’s gross domestic product sank by 6% in the second quarter of 2020.