Nigeria Economy in Trouble, As Oil Price Crashes

Nigeria’s economy may be heading for trouble, as oil price crashed even lower at the weekend, thereby threatening the 2015 budget and fiscal plan.

It is envisaged that prices will crash even further once Iran begins to enyoy its international pardon by pumping more oil into the already saturated market.

This will spell more doom for Nigeria, which is producing less than its projected 2 million barrels daily, thereby increasing the cash crunch and liquidity flow in the economy, with many states still unable to pay salaries.

With this development, economists are expecting further downwards adjustments in the budgetary benchmark, revenue projections and ultimately expenditure provisions. Also, they expect further pressure on the value of Naira as the development has wiped off any accretion to the country’s Excess Crude Account.