₦airaland Forum

According to this CNN report, Nigeria is in trouble and cash starved. The report suggests that Nigeria needs an emergency bail out to survive in the times of crashing Oil prices. Read below:
Nigeria is considering asking the World Bank, the African Development Bank and other international organizations for help to plug a hole in this year’s budget created by the collapse in crude oil prices. The government said it is looking to borrow as much as $9 billion to fund its cash-starved economy.
The 75% plunge in crude prices to around $33 per barrel means Nigeria is now losing money on some of the oil it pumps.
Nigeria is the second major oil producing country, after Azerbaijan, to admit it might need emergency financing because of low crude prices.
Africa’s largest economy is also the continent’s biggest oil producer. The sector accounts for about 35% of GDP, 75% of government revenue and 90% of export earnings.
Nigeria grew by 4% in 2015, and the International Monetary Fund expects a similar rate of expansion this year.
But the government has been burning through its foreign currency reserves, which fell to $28 billion at the end of January from $43 billion two years ago.
And its budget deficit is growing fast. The government wants to invest in big infrastructure projects and make the country less dependent on oil.
The deficit is now expected to reach 3 trillion naira ($15 billion) in 2016, up from a previous estimate of 2.2 trillion.
Nigeria is also suffering from frequent power cuts and fuel shortages because it doesn’t have enough capacity to refine it own crude.
The finance ministry denied reports that it has already asked for emergency cash, but said it is considering a World Bank loan as one way of funding the deficit.
“The truth is that Nigeria… has indicated an intention to borrow 1.8 trillion naira principally for investment in capital projects to stimulate the economy,” Finance Minister Kemi Adeosun said in a statement.
Nigeria is exploring the option of borrowing from multilateral organizations such as the World Bank and AFDB, as well as the Export-Import Bank of China, because they offer lower rates of interest than other lenders, she said.
Nigeria is a member of OPEC, and has been pushing for the Saudi-led oil cartel to cut production to support prices.
OPEC decided in 2014 to wage a price war with low cost producers in the U.S. and elsewhere in a bid to defend market share. Many OPEC countries are still making money at these prices but others are losing.
Nigeria’s average production costs are estimated at about $31 a barrel.
- See more at: http://www.thewhistleng.com/nigeria-is-running-out-of-cash-cnn-sets-off-alarm-bells/?utm_source=&utm_medium=twitter#sthash.mXStXAxP.dpuf

Nigeria is not even credit worthy to begin with so, nobody will loan her cash.

I think we are headings towards recession, hope we come out of this stronger.

This OP go just siddon for house dey search for any Negative news on Nigeria to come and post on Nairaland

In a few years time, you will realise that you have wasted productive parts of your life without achieving anything tangible

Go and apply for a real job or try and update your academic qualifications if you have any.

Shouting APC/PDP on Nairaland is not a solution to personal issues

its Jonathan's fault

Mathschic for Minister of Finance! We want Mathschic! We want Mathschic!!

Why is the source thewhistleng.com and not cnn.com? Lying bloggers everywhere.

Nigeria should not be lent a dime!

Buharis statist economic policies are ruining the economy and the biggest manifestation of that is the official rate of 197 to the dollar and 306 at the black market. Soludo and Sanusi have both condemned his policies.

At this juncture where serious cost cutting is needed, nothing concrete is being done to prune down the size of the civil service by as much as 40%.

Also a full scale deregulation of petrol and kerosene has been shelved. This would have cut parmanently all funding for petroleum subsidies.

Nonsense since we stopped doing deals with JP Morgan all we get from foreign media is bad press bunch of ijiats

white people thinking we are fools,using there media to try to preasure the government into fake loans,no more Mrs Havard to do the job,if we need money we wouldnt borrow from world bank or imf.we would find cheap sources china and araba world.by the way how much is $9billion.is that enough to cover the budget.i guess not.the President should watch that African development bank guy,he is a western foot solider after finishing his work here by bringing GMO he has taken his trade to higher level

erunz:
According to this CNN report, Nigeria is in trouble and cash starved. The report suggests that Nigeria needs an emergency bail out to survive in the times of crashing Oil prices. Read below:
Nigeria is considering asking the World Bank, the African Development Bank and other international organizations for help to plug a hole in this year’s budget created by the collapse in crude oil prices. The government said it is looking to borrow as much as $9 billion to fund its cash-starved economy.
The 75% plunge in crude prices to around $33 per barrel means Nigeria is now losing money on some of the oil it pumps.
Nigeria is the second major oil producing country, after Azerbaijan, to admit it might need emergency financing because of low crude prices.
Africa’s largest economy is also the continent’s biggest oil producer. The sector accounts for about 35% of GDP, 75% of government revenue and 90% of export earnings.
Nigeria grew by 4% in 2015, and the International Monetary Fund expects a similar rate of expansion this year.
But the government has been burning through its foreign currency reserves, which fell to $28 billion at the end of January from $43 billion two years ago.
And its budget deficit is growing fast. The government wants to invest in big infrastructure projects and make the country less dependent on oil.
The deficit is now expected to reach 3 trillion naira ($15 billion) in 2016, up from a previous estimate of 2.2 trillion.
Nigeria is also suffering from frequent power cuts and fuel shortages because it doesn’t have enough capacity to refine it own crude.
The finance ministry denied reports that it has already asked for emergency cash, but said it is considering a World Bank loan as one way of funding the deficit.
“The truth is that Nigeria… has indicated an intention to borrow 1.8 trillion naira principally for investment in capital projects to stimulate the economy,” Finance Minister Kemi Adeosun said in a statement.
Nigeria is exploring the option of borrowing from multilateral organizations such as the World Bank and AFDB, as well as the Export-Import Bank of China, because they offer lower rates of interest than other lenders, she said.
Nigeria is a member of OPEC, and has been pushing for the Saudi-led oil cartel to cut production to support prices.
OPEC decided in 2014 to wage a price war with low cost producers in the U.S. and elsewhere in a bid to defend market share. Many OPEC countries are still making money at these prices but others are losing.
Nigeria’s average production costs are estimated at about $31 a barrel.
- See more at: http://www.thewhistleng.com/nigeria-is-running-out-of-cash-cnn-sets-off-alarm-bells/?utm_source=&utm_medium=twitter#sthash.mXStXAxP.dpuf