Nigeria’s economy is estimated to have contracted by 1.54 percent in 2016, according to a budget ministry source.

Nigeria is heavily dependent on crude oil exports to fuel its economy, but low global prices and militant attacks on the southeastern Delta oil hub have hammered those exports and slashed government revenues.

“The Nigerian economy, in response to both external and internal economic pressures, inevitably contracted and is currently in recession with a projected growth of -1.54 percent for 2016.”

The budget ministry draft, called “Key issues in the Economic Recovery and Growth Plan”, said the recession was also caused by growth dependent on consumption rather than investment and “huge leaks in government resources through corruption and inefficient spending”.

The International Monetary Fund has predicted that Nigeria’s economy would shrink 1.8 percent in 2016. Final official figures are due to be released by Nigeria on Feb. 28.

View article on single page