Tuesday, 19 July 2016

Is Nigeria heading towards recession?

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Is Nigeria heading into recession is the question in the average Nigerian's mind.
According to  IMF (international monetary fund) they slashed Nigeria's growth forecast attesting that it was due to a combination of the weakened investor confidence and the plunging oil reserves. These two factors has pushed Nigeria into recession.

Guardian reports that IMF stated it expects Nigeria who is Africa's largest economy to contract by 1.8% this year , after having forecast in April a 2.3% expansion. The yfurther stressed that in 2016, regional output growth will all short of the population growth. Nigeria's economy has been greatly affected by oil prices and over reliance of oil. The main source of income in Nigeria is oil.

Consistent militant attacks has also plagued the oil production which has affected the economy. On the other hand in the northern part of the country, BokoHaram terrorists have affected the economy. Inflation has hit its highest in 11years. Electricity shortages due to militants activity, the naira currency has also added to the hardships.


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