China Adds Nigeria to Its Empire

The loan comes at a good time as Nigeria faces its worst economic crisis in decades. The country’s projected 2016 deficit is currently at N2.2 trillion ($11.1 billion). Sinking oil prices have eaten into its foreign reserves and the naira has weakened against other currencies. As a resource-rich country, Nigeria’s economic performance has unfortunately been driven by the oil and gas sector. Unfortunate because the progress recorded towards genuine economic development prior to the discovery of oil in commercial quantity has since been virtually eroded. Relying on oil and gas for around 40% of GDP (50% at peak production in 2004) has left the economy vulnerable to the global oil price crash. The sector also represents 90% of their total exports.