Nigerias economy still vulnerable shocks says fg #

The Federal Government of Nigeria has warned that the country's economy is still vulnerable to shocks, despite recent improvements. This is according to a report by the News Agency of Nigeria (NAN).

The warning was made by the Minister of Finance, Budget and National Planning, Zainab Ahmed, during a meeting with the Senate Committee on Finance. Ahmed noted that while the economy has shown signs of recovery, it is still susceptible to external and internal shocks.

She attributed the vulnerability to several factors, including:

  1. Dependence on oil exports: Nigeria's economy is heavily reliant on oil exports, which makes it vulnerable to fluctuations in global oil prices.
  2. Limited diversification: The country's economy is still dominated by a few sectors, including oil, agriculture, and manufacturing, making it vulnerable to shocks in these sectors.
  3. Inadequate infrastructure: Nigeria's infrastructure, including power, transportation, and communication, is still underdeveloped, which can hinder economic growth and make the economy more vulnerable to shocks.
  4. Corruption: Corruption remains a significant challenge in Nigeria, which can undermine economic stability and make the economy more vulnerable to shocks.

Ahmed also highlighted the need for the government to implement policies that promote economic diversification, improve infrastructure, and reduce corruption in order to reduce the economy's vulnerability to shocks.

It's worth noting that Nigeria's economy has faced several challenges in recent years, including a recession in 2016 and a decline in oil prices. However, the government has implemented several policies aimed at diversifying the economy and promoting growth, including the introduction of a new national development plan and the establishment of a sovereign wealth fund.

Overall, the warning by the Minister of Finance highlights the need for the government to continue implementing policies that promote economic stability and reduce the economy's vulnerability to shocks.