Nigeria Budget-Cut Pledge Falls Short as Oil Prices Drop
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Nigeria’s pledge to trim spending in the face of plunging oil prices may fall short of what’s required as Africa’s biggest crude producer heads into an election year.
Finance Minister Ngozi Okonjo-Iweala’s proposal to cut expenditure by 6 percent may be insufficient to address investors’ concerns after oil prices plunged by about 30 percent since July, said economists including Alan Cameron, of FCMB Group Plc in London. The budget approval process will probably also face delays because of the vote, scheduled for Feb. 14.