IMF predicts tougher days ahead for Nigeria's Economy

The International Monetary Fund (IMF) and the Central Bank of Nigeria Governor Godwin Emefiele on Tuesday gave conflicting views

 of the Nigerian economy, with the fund forecasting that the Nigeria economy was likely to contract by 1.8 per cent this year, warning that it was heading towards recession.

Emefiele, on the other hand, during a closed-door briefing with the Senate, informed the upper legislative chamber that the economy was suffering from stagflation.

A recession is defined as a significant decline in activity across the economy, lasting longer than a few months. 

It is visible in industrial production, employment, real income and wholesale-retail trade.

The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country’s gross domestic product (GDP); although a country’s statistical agency does not necessarily need to see this occur to call a recession.

Economic stagflation refers to a period of little or no growth in an economy (of less than 2 or 3 per cent annually) and relatively high unemployment – economic stagnation – accompanied by rising prices, or inflation, or inflation and a decline in GDP.

Nigeria’s GDP growth contracted to -0.36 per cent in the first quarter of this year (Q1 2016) compared to 2.11 per cent in Q4 of 2015 and 3.86 per cent in Q1 2015.

 Several economists have already forecast that the economy is likely to contract again in the second quarter of this year.

Also, the country’s Consumer Price Index (CPI),