Nigeria Says It Needs Radical Reforms After Oil Plunge (1)

LAGOS (Capital Markets in Africa) — Nigeria is faced with an economic challenge that is unprecedented in its history and will need radical reforms to overcome it, the presidency said.

“What we will need to do is something that is bold, radical and one that our people can understand and buy into,” Vice President Yemi Osinbajo said in an emailed statement.

The government will pursue mass housing, increase agricultural production, ensure improved local productivity through support for small businesses and “improve avenues to put more cash in the hands of our people and also make them productive,” said Osinbajo who chairs a committee formed by President Muhammadu Buhari to help the West African nation respond to the impact of lower oil prices on the economy.

Africa’s largest oil producer relies on crude sales for about 90% of export earnings and more than half of government revenues. Growth has averaged just above 2% in the past three years after recovering from its first annual contraction in a quarter of a century in 2016.