Nigerian economy could collapse in a few months

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The Nigerian economy is predicted to collapse in six months if oil prices continue to fall at the current rate and if the country’s currency, the Naira continue to devalue against the dollar, reports claim.

The Nigerian government has planned its next year earnings based on $45 per barrel of crude oil but the commodity now sells below the budget benchmark and should it further drop, a Nigerian economic turmoil will be inevitable, the experts have warned.

A state governor, Godswill Akpabio of Akwa Ibom state of southern Nigeria has expressed worries over the instability of the nation’s economy dependent on the market forces that are not in its control, referring to the international crude oil market.

He said: “The falling crude oil price is a worrisome development. We are dependent on forces that are not within our control. If the oil price can fall from $147 to less than $50 per barrel under three months, that shows that Nigeria can actually collapse economically under six months.

“So, it’s a source of worry that we must make the best prudent use of the available resources on a daily basis, that we must try to create additional revenue generating means and resources if Nigeria must survive.”

The global financial crisis has led to a decline in oil prices from record highs mid this year to record lows this month. The commodity peaked in July costing well over $147 per barrel, falling to a four-year low $40 yesterday.

Also the Nigerian currency the naira continues to loose ground against the dollars ad experts say, the situation will grossly affect the Nations economy in the short and long run.

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