Jun 27, 2017 Last Updated 9:05 AM, Jun 27, 2017

Nigeria pumps $2.8 billion into failing economy

Nigerian curreny nairaABNABN - Nigeria’s central bank has revealed it distributed US$2.83 billion to critical areas of the economic market over December and January, in an attempt to boost the beleaguered national economy.

The West African nation’s economy is heavily reliant on oil production, with up to 70% of government income gained from sales in crude oil.

Therefore, the dramatic drop in global oil prices since 2014 has damaged Nigeria’s economy, with the nation dropping into its first recession in over 25 years during the second half of 2016.

A lack of foreign investment has also worsened Nigeria’s economic position, as businesses continue to struggle importing products from overseas.

The Central Bank of Nigeria (CBN) highlighted manufacturing, raw material, and agriculture as the three key sectors in need of a cash injection.

The raw materials industry received $609 million in December and $228 million in January, while $124 million was provided to the manufacturing sector.

 “The central bank is determined to continue to ease the foreign exchange pressure on critical sectors,” said acting director of CBN’s communication department Isaac Okorafor.

@ABNetworkOnline

 

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