Nigeria’s Economic Regression Worries Me – IMF Chief Lagarde

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Photo Credit: Armstrongeconomics.com

Head of the International Monetary Fund, Christine Lagarde says she’s going through sleepless nights due to the economic situation of Nigeria.

Lagarde disclosed this during an interview on the sidelines of the Albright Institute at Wellesley College, when she said that over-dependency on the exportation of oil has affected the country’s revenue.

She also pointed out that “quite a few countries” are keeping her awake lately, but at the top of the list are low-income nations that rely heavily on exporting oil.

“I think of a country like Nigeria, for instance, where 90% of its exports and 60% of its revenue are generated by oil or oil-related revenues,” Lagarde said.

“It’s necessary [for Nigeria] to very promptly redesign its business model and realign its interests with a completely new reality which is here for longer than many think,” Lagarde said.

Several countries including Nigeria are running out of money because of cheap oil. According to reports, the country is considering asking the World Bank, the African Development Bank and other international organizations for a billion dollar loan to fund its 2016 budget.