Nigeria’s recession deepens, oil output fall worsen dollar shortage


Published on November 21, 2016 by pmnews   ·   No Comments

Godwin Emefiele, CBN governor

Godwin Emefiele, CBN governor

Nigeria’s recession deepened in the third quarter and oil production fell, the National Bureau of Statistics (NBS) said on Monday, as a dollar shortage kept Africa’s biggest economy in a stranglehold.

Gross domestic product contracted by 2.24 percent, the NBS said. A slump in crude prices led Nigeria’s economy to shrink by 2.06 percent in the second quarter, tipping it into recession for the first time in 25 years.

The NBS report comes a day before an interest rate decision, where analysts expect the central bank to hold benchmark rates at 14 percent, amid galloping inflation that hit a more than 11-year high of 18.3 percent in October.

Prices have been pushed up by the dollar scarcity in a country dependent on imports, which has been exacerbated by currency restrictions imposed by the…

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