The onset of the COVID-19 pandemic and the resulting drop in commodity prices greatly affected Nigeria’s economy. A series of macro-economic challenges followed, including a significant rise in inflation, a waning balance of payment position due to the drop in foreign exchange inflows from the sale of crude oil and Foreign Portfolio Investment, and a significant decline in government revenues. As a result, the Nigerian economy fell into a recession in the 3rd Quarter of 2020.

Accommodative monetary and fiscal measures taken by the government and relaxation of containment measures and improvements in the crude oil price helped bring the Nigerian economy out of the recession in the 4th Quarter of 2020.

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