Moody's Says Nigeria's Economy Resilient in Face of Oil Plunge

Moody’s Investors Service said Nigeria’s economy remains resilient in the face of falling oil prices even as the currency slumped to a record low and growth in Africa’s largest crude producer is set to slow.

Nigeria economy, the continent’s biggest, will probably expand 5 percent next year, Aurelien Mali, Moody’s senior analytical adviser, said today in an e-mailed statement. That’s in line with forecasts from the International Monetary Fund and the government’s revised estimate of 5.35 percent.

The West African nation’s government relies on crude exports for about 70 percent of its income and 95 percent of foreign exchange earnings, leaving it vulnerable to price and quantity shocks. Finance Minister Ngozi Okonjo-Iweala is seeking to cut spending in next year’s budget by 8 percent to 4.36 trillion naira ($23.9 billion) as revenue plunges.

Read more: Moody’s Says Nigeria’s Economy Resilient in Face of Oil Plunge – Bloomberg.