₦airaland Forum

Nigeria’s central bank governors are meeting amid a gloomy financial outlook for Africa’s largest economy. Numbers released last week show the country's economy contracting. Economists blame a shortage of fuel, persistent power outages and a fall in the production of Nigeria’s top moneymaker.

That’s what analysts say after the National Bureau of Statistics announced the economy contracted by about four-tenths of a percent in the first quarter of this year. Africa economist at London-based Capital Economics John Asbhourne said a shortage of fuel and shortage of dollars to pay for imported goods stymied economic growth. He doesn’t expect the second quarter to be much better.

“It’s very, very likely the economy will shrink again this quarter, and then we’re in a recession,” said Asbhourne. Oil is Nigeria’s top export and the primary funder of the government's budget. The global drop in the price of crude has cut revenue and harmed the economy. Also, oil production has dropped by a half-million barrels per day because militants blew up several key pipelines in the oil-producing Niger Delta region.

Ashbourne said the government hasn’t helped things by imposing controls on foreign exchange, leading to a shortage of dollars in the country. The shortage of dollars has ripple effects, including the shortage of gasoline, because Nigeria imports most of its fuel.

Read more: http://www.sofreedomains.com/2016/05/nigeria-heads-toward-recession.html

Nigeria is in Recession @ the behest of the U.S.

Na the change be that, make una enjoy it while it last.

a prophecy... if the oil price don't go back to 100$ per barrel before this year end. Nigeria will lost the title of Africa biggest economy. we need to move away from oil. maybe the Fulani groundnut and kulikuli will resurface.

Mr Buhari's economic policies are outdated, his economic team are confused and out of knowledge. Where are all the professors? Please u guys should come and help dulardinho before Nigeria completely collapse

mbaboy:
Mr Buhari's economic policies are outdated, his economic team are confused and out of knowledge. Where are all the professors? Please u guys should come and help dulardinho before Nigeria completely collapse

They should sort it out, as for collapse ... that will be the best option.