Nigeria lowers 2016 forecast

Nigeria’s economy is likely to shrink 1.3 percent in 2016, the Head of the National Bureau of Statistics said on Wednesday, a sharp downward revision of its estimates.

The NBS had predicted the Nigerian economy to grow 3.8 percent in 2016, but low oil prices have hammered the country’s income and the naira.

The Naira fell sharply after the dollar peg was dropped.

A contraction in 2016 would mark Nigeria’s first year of recession in 25 years.

The IMF predicted in July that Nigeria’s economy would contract by 1.8 percent in 2016.

The Head of Nigeria’s National Bureau of Statistics, Yemi Kale said inflation forecasts have also been revised.

Nigeria is planning a Eurobond issue while the African Development Bank will this month consider a $1 billion loan to Nigeria to help cover its budget deficit.

Reuters