Policy Brief & Alerts

June 12, 2018

Nigeria’s Macroeconomic Crisis Explained

Nigeria confronts a prolonged period of adjustment. For more than a generation, the oil sector generated large volumes of foreign exchange. However, with the recent bust in global oil prices and the resumed restiveness in the oil rich Niger-Delta region since 2014, Nigeria was thrust into macroeconomic crisis. Nearly four years on, we argue that […]

Download Label
March 13, 2018 - 4:00 am
application/pdf
636.55 kB
v.1.7 (stable)
Read →

Nigeria confronts a prolonged period of adjustment. For more than a generation, the oil sector generated large volumes of foreign exchange. However, with the recent bust in global oil prices and the resumed restiveness in the oil rich Niger-Delta region since 2014, Nigeria was thrust into macroeconomic crisis. Nearly four years on, we argue that policymakers effectively responded to the dual shocks mainly through import compression. However, the scope for continued import compression is now distinctly limited. For Nigeria to grow and prosper, the long-discussed diversification of the export base must occur via rapid expansion of non-oil exports.




Related

 

Rising Inflation: Will The MPC Raise The Policy Rate Or Support Economic Growth

This brief examines global and domestic developments in Nigeria as well as the effect of slowdown in economic growth of key oil consuming nations on the Nigerian economy.

Budget 2013 And The Drive Towards Inclusive Economic Growth

This brief examines Nigerias Budget 2013, entitled Budget of Fiscal Consolidation with Inclusive Growth and highlights key sectoral allocations of the budget and their targets.