Gloomy economic forecast in Nigeria amid oil slump

Nigeria says it is revising its budget for the year, after global oil prices plummeted.

Africa’s largest economy is predicted to shrink by 3.4% this year.

The West African nation is one of the world’s largest oil producers and its economy has suffered from the global fall in oil prices.

Initially Nigeria’s 2020 budget forecast oil prices of $57 ($45) a barrel but this will now be revised to less than half that amount.

It is likely to have a significant impact on government spending, as the oil-rich nation has relied on petroleum for at least 40% of tax revenue in recent years.

The government has also said it is in talks to discuss deferring debt service payments.