According to this CNN report, Nigeria is in trouble and cash starved. The report suggests that Nigeria needs an emergency bail out to survive in the times of crashing Oil prices. Read below: Nigeria is considering asking the World Bank, the African Development Bank and other international organizations for help to plug a hole in this year’s budget created by the collapse in crude oil prices. The government said it is looking to borrow as much as $9 billion to fund its cash-starved economy. The 75% plunge in crude prices to around $33 per barrel means Nigeria is now losing money on some of the oil it pumps. Nigeria is the second major oil producing country, after Azerbaijan, to admit it might need emergency financing because of low crude prices. Africa’s largest economy is also the continent’s biggest oil producer. The sector accounts for about 35% of GDP, 75% of government revenue and 90% of export earnings. Nigeria grew by 4% in 2015, and the International Monetary Fund expects a similar rate of expansion this year. But the government has been burning through its foreign currency reserves, which fell to $28 billion at the end of January from $43 billion two years ago. And its budget deficit is growing fast. The government wants to invest in big infrastructure projects and make the country less dependent on oil. The deficit is now expected to reach 3 trillion naira ($15 billion) in 2016, up from a previous estimate of 2.2 trillion. Nigeria is also suffering from frequent power cuts and fuel shortages because it doesn’t have enough capacity to refine it own crude. The finance ministry denied reports that it has already asked for emergency cash, but said it is considering a World Bank loan as one way of funding the deficit. “The truth is that Nigeria… has indicated an intention to borrow 1.8 trillion naira principally for investment in capital projects to stimulate the economy,” Finance Minister Kemi Adeosun said in a statement. Nigeria is exploring the option of borrowing from multilateral organizations such as the World Bank and AFDB, as well as the Export-Import Bank of China, because they offer lower rates of interest than other lenders, she said. Nigeria is a member of OPEC, and has been pushing for the Saudi-led oil cartel to cut production to support prices. OPEC decided in 2014 to wage a price war with low cost producers in the U.S. and elsewhere in a bid to defend market share. Many OPEC countries are still making money at these prices but others are losing.Nigeria’s average production costs are estimated at about $31 a barrel.
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Posted: at 2-02-2016 09:07 AM (8 years ago) | Addicted Hero
zezprincess at 2-02-2016 10:28 AM (8 years ago) (f)
This one na white lie,me I no gree with ndi cnn reporter,We get plenty money,Looters money wey buhari recovered,I plenty well well,subsidy nko??? Ngwa abacha own nko? Abeg I no wan hear we no get money again,Even thou the buhari man dey use the money dey globetrot&take care of his health,I no go finish like that cos buhari government no bring out money since his election as president,no job,so our money never finish.
Posted: at 2-02-2016 10:28 AM (8 years ago) | Hero
"I.M.F hmmmm, Ghana is presently suffering due to bailout from I.M.F" and according to conspiracy theorists when you go to I.M.F, your citizens are made to pay through their noses. I don't trust those people at all.
Posted: at 2-02-2016 10:33 AM (8 years ago) | Gistmaniac
me I no gree with ndi cnn reporter,We get plenty money,Looters money wey buhari recovered,I plenty well well,subsidy nko??? Ngwa abacha own nko? Abeg I no wan hear we no get money again,Even thou the buhari man dey use the money dey globetrot&take care of his health,I no go finish like that cos buhari government no bring out money since his election as president,no job,so our money never finish
Posted: at 2-02-2016 12:02 PM (8 years ago) | Gistmaniac
I can't believe what am reading, it sounds child play, sometimes I feel ashamed of my beloved passport, the truth is we don't have a good education system, how then do we have politicians? Sorry My beloved Nigeria.
Posted: at 2-02-2016 01:13 PM (8 years ago) | Upcoming
Really and people are hosting parties worth billions of naira.they should just say we the poor masses are affected by naira inflation. catch me if you can on www.ogesspace.com
Catch you if i can? You be butterfly?
Posted: at 2-02-2016 02:19 PM (8 years ago) | Upcoming
it is shocking that after over 40 yrs of selling more than 2 million barrels of oil daily, we don't have any saving for a time like this..Nigerian is in serious trouble... oil is the only thing that holds this economy....The ordinary man on the street will be most hard hit as crime rates will go up. The rich and those responsible for stealing our money will be fines because most of them already have residences outside the country...congratulations to the Nigerian political thieves, you have succeeded in draining this country dry
Posted: at 2-02-2016 02:53 PM (8 years ago) | Gistmaniac
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