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RE: Crumbling Global Crude Oil Price: Is Nigeria On the Verge of Another Economic Recession?

in Project HOPE • 5 years ago (edited)

Dear @gandhibaba

The other day I was wondering how current situation can impact economies of countries like Venezuela or Saudi Arabia. Somehow I forgot about Nigeria. You're on the same 'boat' as the other two.

Any idea what % of your country GDP is related to oil industry?

The first option appears to be very dangerous because the debt profile of Nigeria is already worrisome

It may also be very difficult in current days to borrow money. Foreign banks may not be willing to be a lender at this time.
Upvoted already,
Yours, Piotr

5 years ago in Project HOPE by
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     5 years ago 

    Any idea what % of your country GDP is related to oil industry?

    Oil accounts for 2/3 of state revenue but only constitutes 9% of GDP. So, oil is a big deal for Nigeria's economy.

    It may also be very difficult in current days to borrow money. Foreign banks may not be willing to be a lender at this time.

    You're right. The risk is very high as oil prices may plunge even further. Banks at least want to lend responsibly. Cheers!

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