With the current Oil price rout and economic challenges, Nigeria has had to lose its slot as Africa’s largest economy by size to South Africa. It’s really nothing for Africa’s most industrialized economy to boast about because both economies have constricted in magnitude. Nigeria now estimated at $296billion, is $5billion smaller than Nigeria which grapples with below $45bbl crude prices and energy deficits. Nigeria recently lifted its 16 month currency peg devaluing more than 65% in an attempted to restore investor flows. Nigeria however vowed to spend itself out of a slump through borrowing. The west African nation has approved a $4.5billion dollar debt program through to 2018 starting with $1billion issue next month.
Both nations, have been tagged by the IMF as facing recession risk this year. Recently SA was overtaken by Egypt in its second place slot for Africa’s second largest economy by size. This was however reversed.
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