Home > Breaking news > Nigeria’s Economy To Shrink 1.3% In 2016 As Dollar Shortages Persist

Nigeria’s Economy To Shrink 1.3% In 2016 As Dollar Shortages Persist

Nigerian President Muhammadu Buhari on Tuesday sent a draft budget framework for 2017, outlining spending plans for Africa’s biggest economy, to the upper house of parliament for approval.

The figures contained in the document, referred to as the medium-term expenditure framework, must be approved by the Senate before the final budget is submitted. Overall spending for 2017 is expected to reach 6.866 trillion naira ($22.57 billion), up from this year’s budget of 6.06 trillion – a record sum for Africa’s most populous nation. Nigeria, an OPEC member, slipped into recession for the first time in more than 20 years in the second quarter largely due to low global oil prices. Crude oil sales account for about two-thirds of government revenue. The problems have been exacerbated by attacks on energy facilities that have cut oil production, which was 2.1 million barrels per day (bpd) at the start of 2016, by 700,000 bpd. Buhari’s plan assumes production of 2.2 million bpd at a price of $42.5 per barrel. The proposal sent to parliament on Tuesday assumes an exchange rate of 290 naira to the U.S. dollar and projects gross domestic product (GDP) to grow by 3.02 percent.

About Editor

Otunba Sayo Akintola is a 1992 graduate of Linguistics from the University of Ibadan, Oyo State. He holds a post-graduate diploma in Financial Management and MBA from Abubakar Tafawa Balewa University, Bauchi. He started his 12-year sojourn in journalism at the Nigerian Tribune in 1993 as Business and Economy reporter. He rose through the ranks to become the Group Business Editor of the nation’s oldest surviving private national newspaper, the Nigerian Tribune. He set up World Street Journal magazine in 2018.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.

x

Check Also

Nigeria Records Worst Day In COVID-19 Management With 23 Deaths

Nigeria on Thursday recorded its worst day thus far in the management of the COVID-19 ...

Nigeria’s AMCON Says 350 Debtors Owing N3.6 trillion

The Asset Management Corporation of Nigeria (AMCON) has said that 350 debtors in Nigeria owe it N3.6 ...