Mixed Oil Markets and Q2 Slowdown Signal Economic Warnings to Nigeria   

5th September, 2019 : Another recent escalation in the trade dispute between the US and China has punished crude Oil prices and set off warning signals for Oil-producing countries like Nigeria.

At the same time, Nigeria’s GDP slowed down to 1.94 percent in the second quarter from 2.1 percent in the first quarter, following the trend seen in several economies such as Germany and the UK.

It is becoming quite clear that as long as oil dependence remains one of Nigeria’s biggest risks, this will continue weighing heavily on the economy for the rest of 2019. While the GDP data should nudge the Central Bank of Nigeria (CBN) to cut interest rates for the second time this year in September in an effort to stimulate growth, this is a temporary fix to a bigger problem

Reporting for EasyKobo on Thursday , 05 September 2019 in Lagos, Nigeria

Source:  Lukman Otunuga, Senior Research Analyst at FXTM.

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