Business Falling Oil Prices: 'Nigeria Won't Print More Naira Notes' - Finance Minister

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LequteMan

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Nigeria- Minister of Finance, Ngozi Okonjo-Iweala on Sunday has revealed that Nigeria won't print more Naira in order to save the country from the effects of a fall in global oil prices, according to Reuters.

She rejected calls she said were coming from parts of government to print more naira: "Printing money without adequate revenue support will lead to serious consequences for the country. It will spur inflation."

In the past, lawmakers have tended to inflate the assumed oil price if they believe it is too low as they want excess cash to feed extensive political patronage networks, analysts say. But given oil prices are falling they might refrain this time.

However, the oil savings Excess Crude Account (ECA) is prone to being raided. Okonjo-Iweala said the government will tap about half of its $4.11 billion ECA, which has declined from $11.5 billion at the start of 2013, to meet current obligations.

She said Nigeria still had funds to pay salaries and keep debt obligations but with crude likely to fall the government would increase taxes on luxury items and ban non-essential government travel to cut expenditure.


#Nigeria #Naira

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