Falling oil prices, Failure in diversification | Reasons behind Nigeria’s days in recession

We reported earlier that, after a terrible year for Africa’s largest economy, it seems Nigeria is finally limping out of recession.

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Falling oil prices decimated an economy almost entirely dependent on one export.

Federal government has been widely accused of mismanaging the crisis, limiting access to foreign currency and plunging the country into its worst economic crisis in 25 years.

While its stiffest economic competition on the continent – South Africa – seems to have rebounded, Nigeria is struggling still.

Even in the oil sector growth has been relatively small.

And the effects of a push to diversify the economy is not being felt yet – non–oil growth actually slowed since last year.

One of the fastest growing countries in the world, Nigeria needs to maintain around 3% growth just to keep up with its booming population. So, while the news for now is good, the country has a way to go before it fully emerges from the economic doldrums.

SOURCE: The Bloomgist/BBC


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