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Nigeria to use oil cash

9 Oct 2009

Nigeria is planning to spend up to two billion US dollars from its oil cash reserves to boost its economy in response to the global downturn, the country's junior finance minister Remi Babalola announced this week. The National Economic Council has already approved the economic stimulus package, Babalola said.

Nigeria's economy depends heavily on oil exports and the nine billion US dollar fund was set up to protect the country if the price of oil falls. However, economists have criticised the plan, fearing it might leave the country exposed if recovery in the global economy suffers a setback.

Nigeria is the world's eighth largest exporter of oil, but oil output has dropped by around a third due to rebel attacks on oil facilities in the Niger Delta.

Source: Panos London