Optimistic outlook as Nigeria’s economy proves resilient
Economic improvements in recent month have led to a more positive outlook for the West African state
Nigeria presents an interesting tale of apparent opposites in the African growth scenario. Taking pole position as the largest economy in Africa in 2016 while suffering from its worst recession in 25 years is indicative of the ups and downs seen in the country’s economy. The past 24 months, in particular, have been difficult for the nation amid an exodus of foreign direct investment (FDI) and assets prior to and during the presidential elections in February 2015. The country risked a liquidity crunch, with the Central Bank of Nigeria and the Nigerian Stock Exchange both facing trials and national reserves decreasing from more than $50-billion to $20-billion. Other socioeconomic issues also came to the fore: volatile commodity prices; poor production in the dominant oil sector and depressed import levels; a devalued currency; inflation; high unemployment; and the challenge of corruption. In line with these developments, foreign exchange suffered a blow. A contributing factor was Nige...
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