Finance

Nigeria’s GDP could expand 2.5% next year if oil output rises – Moody

Nigeria’s economy can expand by 2.5 percent next year, rebounding from a recession entered in the second quarter, as long it can keep oil output at 2.2 million barrels per day, a senior Moody’s analyst said.

Africa’s largest economy faces its worst crisis in 25 years, brought on by low oil prices which have slashed government revenue, hammered its currency and caused chronic dollar shortages frustrating businesses. Third quarter gross domestic production data is expected on Monday.

Aurelien Mali, Moody’s senior analytical adviser for Africa, told Reuters late on Sunday that he expects a contraction from a year earlier, and said the fourth quarter could be close to flat.

Mail said increases in oil output will help Africa’s top oil exporter generate more dollars.

“With resumption of oil production and the dollars that should come, we expect that Nigeria would be able to accelerate the implementation of the budget.  With acceleration, we expect that (growth) could reach 2.5 percent next year,” Mali said.

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