Nigeria oil revenue may drop to $52b, says IMF

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The International Monetary Fund (IMF) Article IV Consultation Staff Report has shown that Nigeria oil earnings would drop to $52 billion this year, from $88 billion it was the previous year.

This represents a reduction of six percentage points in the nation Gross Domestic Product (GDP) and would reduce its external current account balance as well as international reserves.

The Fund report says Nigeria outlook for growth is expected to moderate as the economy adjusts to permanently lower oil prices.

According to the IMF, fiscal oil revenues are projected at 3.4 per cent of GDP, down from 5.8 per cent last year, limiting fiscal spending.

It said aggregate demand shocks could lower growth by about 1.5 percentage point from last year to 4.3 per cent this year.

IMF added that the overall impact on non-oil sector GDP will come from cuts in public investment and a reduction in real purchasing power of oil receipts.

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