Nigeria’s finance minister, Kemi Adeosun, has said that the nation won’t overcome economic recession through the actions of the Organisation of Petroleum Exporting Countries, OPEC.
Mrs. Adeosun said this, Wednesday, while fielding questions from journalists on the sidelines of the International Monetary Fund and World Bank spring meeting in Washington.
The minister noted that Nigeria must focus on implementing the right type of economic policies to get out of recession.
She pointed out that oil revenues account for around 10 per cent of Nigeria’s overall GDP (gross domestic product ) and argued that the implementation of domestic policies would hold the key to a long term economic recovery.
When asked about Nigeria’s policy implementation, the minister said “I’m not sure that I agree that OPEC is the reason that we will get out of recession.
“We will get out of recession because we are following the right type of policies. Our objective is not just to get out of recession, our objective is to grow and grow sustainably.”
Nigeria, Africa’s largest economy relies mainly on oil as its source of revenue.
But agitations by militants in the oil-rich Niger Delta region of the country has led to decline in its oil production output.
When OPEC agreed to slash output by around 1.2 million barrels per day (b/d) in November 2016 in order to remove a supply glut, the nation’s poor output enabled it secure an exemption. However, production has since increased following negotiations with Niger Delta communities and leaders.
Brent crude has soared by around 19 per cent since OPEC decided to reduce output and analysts forecast oil prices to return to the mid $60s by year end.
Commenting on the deal, Mrs. Adeosun said, “We very much are benefitting from the improved oil price, you know it went as low as $28 a barrel. So, the region that it is in at the moment, it gives us the ability to plan.
“What we didn’t need was volatility, we need much more stability which the OPEC deal has given us.”