The International Monetary Fund, IMF, is forecasting that Nigeria’s growth rate would slow to about 5 percent in 2015 as falling oil prices cut revenues and spending.
In a statement by the IMF Mission Leader to Nigeria, Mr Gene Leon, the country would have to rely more on the non-oil sector which helped it grow 6.1% in the third quarter of 2014.
According to Mr Leon, the CBN’s 8% devaluation of the naira would likely boost inflation, but the effect is likely to be contained, owing to lower food prices from increased local production of staple food crops.
“Nigeria remains vulnerable to oil price volatility and global financial developments,” Gene Leon said in the statement. There are domestic risks including uncertainty ahead of February elections and security, he said.
“Capital outflows have continued and, with lower oil receipts, have led to sustained pressure on the naira.
“Despite the outlook, Nigeria could surmount its challenges, especially if a national spirit of burden sharing and rebuilding together is actively embraced.”
President Goodluck Jonathan of the ruling People’s Democratic Party (PDP) faces a united opposition of the All Progressives Congress (APC) led by former military Head of State, Muhammadu Buhari, in February 2015.
The duel has been considered the party’s stiffest challenge since it came to power at the end of Army rule in 1999.
