Abdulaziz Yari, Zamfara State governor, who also doubles as the chairman of the Nigerian Governors’ Forum, has warned that Nigeria may head for another economic recession due to the decline in oil price.
Yari projected that the vital oil industry maybe hit by another weaker global prices, which has fallen from highs of about $112 a barrel in 2014 to below $75 at the moment.
Yari, while speaking at the opening ceremony of an induction programme for newly-elected and returning governors in Abuja, said “this scenario is a wake-up call for all of you to come amply prepared to face these kinds of challenges.”
“We are expecting the possibility of another cycle of recession by mid-2020 and which may last up to third quarter of 2021,” he added.
Similar thoughts was also shared by the monetary policy committee of the Central Bank of Nigeria in December 2018.
Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said the economy had started showing signs of weakness.
According to Emefiele, the slowdown emanated from the oil sector, with strong linkages to employment and growth.
Yari, therefore, advised that governors to “look inward by boosting your revenue generation base” and also use the revenue judiciously