L
LequteMan
Guest
According to Dr. Abraham E. Nwankwo, Director-General of Nigeria’s Debt Management Office, Nigeria is doing better than its oil exporting counterparts in cushioning the effects of the oil crash.
"Nigerians would better appreciate how much better we have coped with the current oil price shock, by observing the ongoing experiences of other major oil exporting and oil dependent countries, like Venezuela and Russia," he says in a Sunnews report.
"In Russia Inflation rate has risen from 6.1 per cent in January 2014 to 11.4 per cent as at December 2014, mainly as a result of food inflation which is about 16.4 per cent; Scarcity of meat, poultry products and sugar; Ruble devalued by 52% in 2014; Central Bank interest rate increased from 10.5 per cent to 17 per cent in December 2014 and later in 2015 brought down to 15 per cent which is still relatively high; and, Russian Bonds downgraded to junk.
"In Venezuela, there is shortage of basic items – milk, coffee, sugar, meat and tissue paper. Long queues for essential items leading to public protests and riots; Inflation at 63.61% as at November 2014; Ratings downgrade by Moody’s and Fitch; Using oil exports to repay Chinese loans; and, Debt default expected.
"A comparison of the impact of oil revenue crash shows that Nigeria is coping better with the current 2014/2015 oil price crash, than it did with earlier occurrences," he said.
#Nigeria #OilCrash #DMO #Russia #Venezuela
"Nigerians would better appreciate how much better we have coped with the current oil price shock, by observing the ongoing experiences of other major oil exporting and oil dependent countries, like Venezuela and Russia," he says in a Sunnews report.
"In Russia Inflation rate has risen from 6.1 per cent in January 2014 to 11.4 per cent as at December 2014, mainly as a result of food inflation which is about 16.4 per cent; Scarcity of meat, poultry products and sugar; Ruble devalued by 52% in 2014; Central Bank interest rate increased from 10.5 per cent to 17 per cent in December 2014 and later in 2015 brought down to 15 per cent which is still relatively high; and, Russian Bonds downgraded to junk.
"In Venezuela, there is shortage of basic items – milk, coffee, sugar, meat and tissue paper. Long queues for essential items leading to public protests and riots; Inflation at 63.61% as at November 2014; Ratings downgrade by Moody’s and Fitch; Using oil exports to repay Chinese loans; and, Debt default expected.
"A comparison of the impact of oil revenue crash shows that Nigeria is coping better with the current 2014/2015 oil price crash, than it did with earlier occurrences," he said.
#Nigeria #OilCrash #DMO #Russia #Venezuela
