Nigeria in the eye of the storm
In the months leading up to January 2015, the price of oil fell
by 60% driven down largely by booming shale oil production, the
drop in energy demands from emerging markets and the strengthening
of the US dollar. By late-January of 2015, Brent Crude traded at
around $50, hitting its lowest-levels since the global financial
crisis in 2009. Prices however recovered to around $60-65 by the
end of the first quarter of 2015 – but this still represents
a major adjustment from the $90-110 average price levels we've
seen over the last five years.
For net oil exporters like Nigeria, the effect of this price
adjustment has been far reaching on the economy with government
revenue declining rapidly, foreign investors exiting the domestic
market and putting pressure on the Naira. Oil as is common
knowledge is Nigeria's main source of foreign exchange earnings
and government financing. The impact of the oil price drop on the
economy has led to
