International Monetary Fund Managing Director Christine Lagarde rejected Nigeria’s loan application due to the country’s potential for an economic rebound, according to AFP. In December, Nigeria announced such efforts as diversification and infrastructure investing—factors which bolstered the IMF’s confidence in Nigeria. The organization will monitor the country’s budget and finances going forward.
After the plunge of the commodity prices, the US Fed’s rate hikes are paving way for dimmed prospects in many emerging economies. Nigeria is not an exception. Recently, the US Federal Reserve raised interest rates by 25 basis points, taking the first step away from its near-zero interest rate policy. Advanced economies are coping with secular stagnation. Emerging economies are navigating in new uncertainty.
The sting of low oil prices has forced Nigerian president Mahammadu Buhari to seek help from the International Monetary Fund, according to Reuters. The president plans to boost spending to stimulate the economy, but Nigeria will need help from the organization to do so. The government plans to borrow up to 900 billion naira to satisfy the deficit, and authorities aim to double the deficit to 2.2 trillion naira in 2016.
The World Bank and International Finance Corporation (IFC) have announced plans to create an off-grid solar power system for Nigeria. World Bank and IFC have dubbed the program “Lighting Africa,” and it will unite private sector interests with public entities to help build sustainable infrastructure and markets for solar-powered products. People who live in areas that do not presently have grid-supplied power will serve as the key focus of the program.
Africa did not achieve many of the Millennium Development Goals. This was mainly because of poor governance and the inability of many governments to stimulate sustainable development.
The Sustainable Development Goals give the continent a new opportunity to achieve a new set of objectives. These include stimulating equitable growth, protecting the environment, and delivering quality affordable and reliable infrastructure.
President Muhammadu Buhari and his party, the All Progressive Congress, rode to power on the promise to fight corruption, restructure the Nigerian economy, and reduce poverty.
Riding on the slogan of “change,” and the perceived discipline and incorruptible disposition of Buhari, Nigerians believed that the messianic personality who will fight corruption, promote economic and infrastructural development, had indeed been found.
Nigerian economic expansion contracted to 2.84 percent in the third quarter, a stark contrast from 6.23-percent seen from a year before, according to Reuters. Crude prices dropped roughly 60 percent since June 2014, affecting Nigeria’s oil-based economy. The West African nation relies on oil for 70 percent of its state revenue.
Nigerian oil and gas company Seven Energy International Limited (Seven Energy) announced a $200 million (USD) deal with the World Bank related to the development of infrastructure development critical to Nigeria’s gas industry.
Ever since Nigeria started harvesting its petroleum endowment, its economy’s umbilical cord firmly ties to the volatility of this commodity’s price.
About 65% to 70% of annual government expenditure comes from oil revenues and this demonstrably reflects this vulnerability. Historically, it has been as high as 90%. Every downturn in global oil prices has curiously hit Nigeria like a predictably repeated below-the-belt punch.
The government of the state of Lagos – Nigeria’s former capital – has proudly proclaimed it is building a new city that will become the new financial centre of Nigeria, and perhaps West Africa. The scale of the Eko Atlantic project is immense and progress comes through a team effort between investors, planners, engineers, and contractors.
