Nigeria, the second largest economy in Africa, has a population of 167 million people making it the most populous country on the continent. The West African nation is also the second-top producer of oil in Africa, after Angola. It has been in an economic crisis since 2014 and slipped into a recession this year.
Below are 10 things to know about the economic recession in Nigeria.
Oil prices slide
The global fall in oil prices in mid-2014 pushed the economy into crisis. Oil is Nigeria’s leading export commodity and accounts for about 70 percent of the country’s annual budget. The fall in prices was compounded by militant attacks on its oil-rich Niger Delta region. The militants damaged Chevron offshore facility and an underwater Forcados export pipeline.
Nigeria received a record decline of capital importation as investor fears grew due to the recession. In the second quarter of the year, the country recorded a $647.1 million in capital importation, a fall of about 75.7 percent for a similar period in 2015.