Nigerians take direct hit from oil crash as stocks fall to 4 year low and naira weakens

The article is likely referring to the significant economic challenges faced by Nigeria due to the global oil price crash and its impact on the country's stock market and currency.

Here's a breakdown of the situation:

Stock Market:

• The Nigerian stock market has been severely affected by the oil price crash, with the All-Share Index (ASI) falling to a 4-year low.
• The ASI is a benchmark index that tracks the performance of the top 30 companies listed on the Nigerian Stock Exchange (NSE).
• The index has declined by over 20% in the past year, wiping out billions of naira in investor wealth.

Naira Weakness:

• The naira, Nigeria's official currency, has weakened significantly against major currencies such as the US dollar.
• The official exchange rate has risen to over 360 naira per dollar, up from around 280 naira per dollar in 2018.
• The black market rate, which is often used by individuals and businesses to exchange currency, has risen even higher, with some reports suggesting a rate of over 500 naira per dollar.

Causes of the Crisis:

• The oil price crash has been a major factor in Nigeria's economic woes. The country is heavily reliant on oil exports, which account for over 90% of its foreign exchange earnings.
• The decline in oil prices has reduced Nigeria's revenue, making it difficult for the government to fund its budget and meet its financial obligations.
• Other factors, such as a decline in foreign investment and a rise in inflation, have also contributed to the crisis.

Impact on Nigerians:

• The economic crisis has had a significant impact on ordinary Nigerians, who are facing rising prices, reduced purchasing power, and increased unemployment.
• Many Nigerians are struggling to make ends meet, with some reports suggesting that up to 60% of the population lives below the poverty line.
• The crisis has also led to a decline in living standards, with many Nigerians unable to access basic necessities such as healthcare and education.

Overall, the situation in Nigeria is dire, and the government and central bank are under pressure to find solutions to the crisis.