An American Business magazine, Business Insider has reported that Nigeria’s current economic policies have hindered the economy from growing, noting that the country is heading to a full blown economic crisis.
According to the report, the recession was due to lower oil prices and the government’s Foreign exchange and Price Control policies.
The report noted; “Nigeria’s economic crisis is getting worse. On Friday the Nigerian Bureau of Statistics revealed that the country’s economy shrank by 0.4% year-over-year in the first quarter — way worse than expected.
“Economists were expecting the country to grow by 1.8% year-over-year, according to the Bloomberg consensus. And now analysts aren’t feeling too good about the situation going forward.
“We have long warned of a slow-burning crisis in Nigeria,” Africa economist John Ashbourne said. “It now seems that this view was too optimistic: the country is headed into a full-blown economic crisis.”
“Nigeria continues to suffer from numerous economic headaches, (which analysts have more or less deemed a failure). The biggest drop in growth was in Nigeria’s manufacturing sector, which Ashbourne wrote was caused by the country’s FX policies.
“This is very bad news for Nigeria’s government, which has justified the current FX system as a method of promoting non-oil industries,” Ashbourne added.
“It is now clear that these policies have — as we had long argued — made a bad situation worse.”
According to him, “the worst is yet to come.”
Africa’s largest economy is facing a downturn majorly due to the falling oil prices – which accounts for about 70% of the earnings and the recently fuel shortage crisis and oil-production disruptions by the Niger Delta Avengers.
In line with this, Economic Analysts have called on President Muhammadu Buhari to address these pressing issues with the right approach in other to avert a possible economic meltdown.