Nigeria’s economy is facing a recession because of the tardiness of the federal government to pass the year’s fiscal budget, CBN governor, Godwin Emefiele, has said.
The governor said this on Tuesday when he announced that government has removed the peg on the official naira-dollar exchange rate- a move which is seen as a ‘technical’ devaluation of the currency.
Emefiele, who also announced plans to introduce more flexibility in the foreign-exchange market, something which President Muhammadu Buhari has resisted, said the budget delay has caused distortions in the system.
“One aspect that is largely contributing to the situation we find ourselves today is the delay in the passage of the budget,” Emefiele said.
“You can imagine a situation where a budget is passed in May when it should have been passed in January, or even latest February.”