The International Monetary Fund, Thursday, announced that it has again cut its growth forecast for Nigeria as the nation faces “substantial challenges” from low crude prices. According to Reuters reports.
The IMF in its annual review of Nigeria’s economic situation, revealed that gross domestic product growth would slow to 2.3 percent in 2016 from an estimated 2.7 percent in 2015.
In February, when IMF officials led by its President Christine Lagarde visited the country, the Fund had forecast 3.2 percent growth for Nigeria in 2016.
“Key risks to the outlook include lower oil prices, shortfalls in non-oil revenues, a further deterioration in finances of state and local Governments, deepening disruptions in private sector activity due to constraints on access to foreign exchange, and resurgence in security concerns,” the IMF said, adding that Nigeria’s general government deficit would grow further after doubling to 3.7 percent of GDP in 2015.