Falling Oil Price Is Threatening Nigeria's Economy - Sanusi Lamido

                                    

According to Vanguard newspaper reports, falling oil prices and domestic energy output due to declining global demand are a concern for Nigeria’s economy, the country’s Central Bank Governor, Mallam Sanusi Lamido Sanusi said yesterday. The worsening situation in the Euro zone and rising global food prices may also push inflation higher, Sanusi said in an interview on Nigeria investment conference, adding that the country’s slower growth and tighter fiscal discipline could counter balance those upward effects.


“The budget is based on assumptions of output of 2.4 million barrels a day, and output has been under performing, so $72 may not be an effective benchmark,” Sanusi said.

He said: “The price of oil is affected by global demand. The economy remains highly vulnerable to movements in the commodity price, the global outlook is important,” adding that a slowdown in growth in emerging economies was contributing to the drop in demand, unlike during the sub-prime crisis.