Nigeria economy "could expand 2.5 per cent next year" - Moody's

Nigerias kobo commons Samuel Tobbytex007Nigerian Kobo could rise in value with an increase in oil output, according to Mali of Moody's, speaking to Reuters. (Image source: Samuel Tobbytex007/Commons)A senior Moody's analyst has said that the Nigerian economy could expand by 2.5 per cent in 2017 if it can maintain output at 2.2mn bpd 

According to an interview with Reuters, Aurelien Mali, a senior Moody's analyst has said that the Nigerian economy could recover from its recession that it entered into in the second quarter of this year, as long as it can maintain its oil put at 2.2mn bpd. The low price has taken an exceptionally large hit to Africa's largest economy, as it has brought down the government revenue, devalued its currency and caused huge dollar shortages in Nigeria, frustrating local and international business. 

Mali stated that he expects a contraction from last year, and the fourth quarter could be close to flat. Meanwhile, an increase in oil output will help Nigeria develop more dollars. 

"With resumption of oil production and the dollars that should come, we expect that Nigeria would be able to accelerate the implementation of the budget," Mali said.

"With an acceleration, we expect that (growth) could reach 2.5 per cent next year," Mali said.

The full interview with Aurelien Mali can be found on the Reuters website here

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