Nigeria lowers 2016 forecast to 1.3 percent

Nigeria’s economic growth started to slow by the second quarter of 2014 after an oil price collapse hurt government revenues and caused severe dollar shortages on the currency market.

Oil sales, which generate 90 percent of foreign exchange for the economy, contributed around 10 percent of Nigeria’s GDP directly and around 52 percent indirectly through its links with other sectors, Kale said.

A record 2016 budget of 6.06 trillion naira aimed at tackling the recession was based on generating non-oil receipts largely from widening the tax net and raising debt at home and abroad to augment spending. So far the government has spent 720.5 billion naira on capital spending.

But Nigeria has yet to raise funds abroad and revenue problems have been exacerbated by militant attacks on energy facilities, which have cut crude production by a third.

The debt office launched a roadshow to Britain and the United States to promote a planned Eurobond issue while the African Development Bank will this month consider a $1 billion loan to Nigeria to help cover its budget deficit.