Massive economic crises loom, says CBN

The Monetary Policy Committee of the Central Bank of Nigeria have said the outbreak of the coronavirus pandemic would lead to massive economic crisis capable of throwing many countries into recession.

The committee said the COVID-19 pandemic would not only result in health crises, but also massive economic crises that would force even leading industrialised countries into recession. The CBN Governor, Mr Godwin Emefiele, announced the position of the committee at the end of its two-day meeting held at the apex bank’s headquarters in Abuja.

Emefiele said the MPC underscored the COVID-19 pandemic as a public health crisis which would continue to undermine any monetary or fiscal stimulus unless appropriate measures were taken to trace, test, isolate and treat infected persons in order to curtail the spread.

While calling for a significant reduction in migration across the country, the governor said the committee urged the Federal Government to take the necessary steps to safeguard the population through close monitoring and emergency measures to identify and care for infected persons in the country.

He said the overall medium-term outlook for the global economy remained uncertain with increased deterioration in financial market conditions and weak global output growth.