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Nigeria’s macroeconomic crisis explained

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  • Arndt, Channing
  • Chuku, Chuku
  • Adeniran, Adedeji
  • Adetutu, Morakinyo
  • Ajayl, Victor
  • Mavrotas, George
  • Onyekwena, Chukwuka

Abstract

Nigeria confronts a prolonged period of adjustment. For more than a generation, the oil sector generated large volumes of foreign exchange. However, with the recent bust in global oil prices and the resumed restiveness in the oil rich Niger-Delta region since 2014, Nigeria was thrust into macroeconomic crisis. Four years on, we argue that policymakers effectively responded to the dual shocks mainly through import compression. However, the scope for continued import compression is now distinctly limited. For Nigeria to grow and prosper, the long-discussed diversification of the export base must occur via rapid expansion of non-oil exports.

Suggested Citation

  • Arndt, Channing & Chuku, Chuku & Adeniran, Adedeji & Adetutu, Morakinyo & Ajayl, Victor & Mavrotas, George & Onyekwena, Chukwuka, 2018. "Nigeria’s macroeconomic crisis explained," NSSP working papers 52, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:nsspwp:52
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    File URL: https://hdl.handle.net/10568/145481
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    References listed on IDEAS

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    1. Devarajan, Shantayanan & Lewis, Jeffrey D & Robinson, Sherman, 1993. "External Shocks, Purchasing Power Parity, and the Equilibrium Real Exchange Rate," The World Bank Economic Review, World Bank, vol. 7(1), pages 45-63, January.
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    Cited by:

    1. Patrick L. Hatzenbuehler & George Mavrotas, 2021. "Combining household and price data to target food marketing interventions in Nigeria," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(2), pages 493-505, April.

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