Nigeria's Economy Is In Bad Shape - CBN

The Central Bank of Nigeria (CBN) has told senators in a closed doors meeting that the Nigerian economy is in a bad state with financial projections not painting a good picture for its financial future.

Governor of the CBN, Godwin Emefiele told senators that it was highly disturbing that the economy was stagnating while at the same time experiencing inflation saying that normally the two were not supposed to happen simultaneously.

Emefiele said that the economy was showing worrying signs as it is stagnating and worsening as a result, listing the renewed bombing of oil installations by the Niger Delta Avengers as a factor.

The IMF slashed its growth forecast for the economy this year on Tuesday, saying a combination of plunging oil revenues and weakened investor confidence will push it into recession.

The International Monetary Fund said it expects Africa's largest economy to contract by 1.8 percent this year, after having forecast in April a 2.3 percent expansion.

Nigeria's economy has been battered hard by the plunge in oil prices, the main source of the country's income, as well as prices of other key commodities.

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