A much lower trade surplus owing to weaker oil prices pushed the current account into deficit last year. Indications suggest that the current account will remain in deficit this year as trade moves into deficit. Foreign exchange reserves fell last year owing to government drawdowns. The exchange rate softened over the course of last year. With establishment of a single market-determined exchange rate, the naira is expected to weaken further.
External debt remains a major problem.
Hopes for an early agreement with the Paris Club of official creditors on relieving the debt burden are unlikely this year and await funding approval from the IMF for the civilian government's medium-term economic strategy. The budgetary cap on external debt-service remains. Nigeria faces a period of uncertainty with the transition to a civilian administration this year. All rights reserved. Please read Terms of Use .