Nigeria’s budget deficit is set to narrow sharply this year as oil revenues increase and the government fails to meet ambitious capital spending plans. The shortfall should be easily covered by domestic borrowing but, if we’re right in expecting oil prices to fall over the course of 2022, the deficit will start widening again and policymakers may revert to direct financing by the central bank.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.