Nigeria: Nigeria faces grave consequences, IMF warns

The IMF has issued a blunt warning that unless the European economic crisis is resolved, the global economy faces another 1930s style ‘Great Depression’ which would negatively affect frontier markets including Nigeria. This followed the failure of European finance ministers to reach a restructuring agreement with private holders of Greek debt Monday night. If Greece does not put itself in a position to receive aid funding by the end of March, it will suffer a disorderly default on its debt. A drop in global demand would affect Nigeria negatively, as the country depends almost exclusively on oil sales to fund more than 90 per cent of its budget and Foreign Exchange earnings.