Nigeria: Jonathan optimistic about growth, economy in 2015

Nigerian President Goodluck Jonathan has said that the West African nation will keep its currency strong and its economy stable in 2015 as it seeks to boost investor confidence following the rapid fall in oil prices.

According to Jonathan, his administration will “take away speculative behaviors and maintain healthy external reserves to ensure the naira remains strong providing investors the clarity and certainty they need.”

The 2015 budget contains measures to guarantee economic stability and “ensure that the downturn in the price of oil does not affect our development plans too adversely,” he said during his address to the nation on New Years day.

Oil accounts for 70 percent of Nigeria’s income and 95 percent of its foreign exchange.

Nigeria – the largest economy in Africa, is struggling to curb currency volatility that led to a 12.6 percent retreat last year, as oil prices lost almost half their value in the biggest annual decline since the 2008 global financial crisis. The country’s Finance Minister, Ngozi Okonjo-Iweala, proposed cutting this year’s budget by 8 percent to 4.36 trillion naira (US$23.6 billion) while the government will seek to strengthen tax collection, raise taxes on luxury items and alcohol, and diversify the economy.

The 2015 budget “is targeted at deepening our efforts at becoming a non-oil economy,” and attract more local and foreign direct investment, Jonathan added.

Jonathan, faces a re-election challenge in February.

Source: Bloomberg Businessweek