With 200 Million People, Nigeria Faces Crisis if Oil Remains Low
Posted on 04/11/2020
Nigeria, a sub-Saharan African country with a growing population of 200 million people, is requesting US$ 3.4 billion from the International Monetary Fund (IMF) and up to US$ 2.5 billion from the World Bank. This money would be a short-term fix for Nigeria.
With global oil prices collapsing, Nigeria could fall into its second recession in five years. Being the largest crude oil producer in Africa, Nigeria remains reliant on oil exports, which account for 95% of the country’s total export revenue. This fall in oil revenue could also lead to further currency devaluation of the naira. Relying on crude oil receipts, Nigeria’s fiscal budget for 2020 was based on an oil barrel price of US$ 57.
