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Vice President, Yemi Osinbajo believes that the best way to avoid recession is by spending more on infrastructure.
See excerpts from Bloomberg Business :
Nigeria can overcome slowing growth with spending as the government plans to create a $25 billion fund combining public and private financing to develop infrastructure, Vice President Yemi Osinbajo said.
The decline in oil prices since last year has led Nigeria, Africa’s largest producer of crude, to slash its budget and contributed to a weaker currency. The country’s credit rating has been downgraded by Standard & Poor’s, while JPMorgan Chase & Co. removed Nigeria from its local-currency emerging market indexes. The nation relies on oil for about two-thirds of its revenue and 90 percent of its exports.
“We think that the way out of this, what some have described as an impending recession, is actually to spend rather than to cut back in any way,” Osinbajo said in an interview on Tuesday in the capital, Abuja.
Exchange rate controls have been “largely successful” and “inevitable in the short term” as the central bank has looked to slow the draw-down in foreign-exchange reserves, said Osinbajo. The country’s reserves have dropped to about $30 billion, down from almost $40 billion a year ago, from defending the local currency. The naira has declined about 8 percent against the dollar since the start of the year.
Click here to read more
SOURCE: Bloomberg Business
See excerpts from Bloomberg Business :
Nigeria can overcome slowing growth with spending as the government plans to create a $25 billion fund combining public and private financing to develop infrastructure, Vice President Yemi Osinbajo said.
The decline in oil prices since last year has led Nigeria, Africa’s largest producer of crude, to slash its budget and contributed to a weaker currency. The country’s credit rating has been downgraded by Standard & Poor’s, while JPMorgan Chase & Co. removed Nigeria from its local-currency emerging market indexes. The nation relies on oil for about two-thirds of its revenue and 90 percent of its exports.
“We think that the way out of this, what some have described as an impending recession, is actually to spend rather than to cut back in any way,” Osinbajo said in an interview on Tuesday in the capital, Abuja.
Exchange rate controls have been “largely successful” and “inevitable in the short term” as the central bank has looked to slow the draw-down in foreign-exchange reserves, said Osinbajo. The country’s reserves have dropped to about $30 billion, down from almost $40 billion a year ago, from defending the local currency. The naira has declined about 8 percent against the dollar since the start of the year.
Click here to read more
SOURCE: Bloomberg Business