NIGERIA IN 2009
That Nigeria’s economy would be in a dire strait in 2009 is no longer news; not with the fall in the price of petrol in the international market and the much talked about and already pinching global economic meltdown. Capital flights by foreign investors to bail out parent companies in their ailing economies have not helped matters. According to Dr. Mailafia, former deputy governor of the Central Bank of Nigeria, the global recession will have seven major effects on the Nigerian economy. First, as an immediate consequence, it is likely to aggravate the ongoing stock market crisis. Recently, it was reported that foreign portfolio investors have withdrawn some US$15 billion from our capital markets. Such massive withdrawals compound the crisis of confidence which will further complicate the capital market recovery process. Secondly, dwindling petroleum prices mean a severe reduction in foreign exchange earnings, which, in our case, derive overwhelmingly from the petroleum sector. Some ex...