Nigerian Finance Ministry to Cut Growth Outlook as Oil Retreats

Nigeria’s Finance Ministry said it’s set to lower the economic-growth forecast for 2015 as tumbling oil prices erode government revenue.

The government, which had initially projected 6.35 percent growth for next year, may lower that estimate by about one percentage point next week, Paul Nwabuikwu, a spokesman for the finance ministry, said by phone today from the capital, Abuja.

Global oil prices have plunged more than a third since June, roiling Nigeria’s markets, eroding foreign-currency reserves and prompting policy makers to devalue the naira for the first time in three years. With crude exports accounting for about 70 percent of government income, the revenue slump may force authorities to curb spending in 2015 during an election year.

Nigeria won’t resort to printing money or imprudent borrowing as it adjusts to lower prices of oil, Finance Minister Ngozi Okonjo-Iweala said on Dec. 8.

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