Africa’s largest economy braces for big hit as oil prices plummet

Africa’s largest economy braces for big hit as oil prices plummet

With oil prices plunging amid concerns over a price war between Russia and Saudi Arabia , and the coronavirus outbreak obliterating stock markets, Africa's largest economy is in a precarious position.. The International Monetary Fund (IMF) on Thursday said it will be working closely with the Nigerian authorities in the coming days to assess any vulnerabilities which may be exposed by the sharp decline in crude prices, as Nigerian and Angolan dollar bonds sank to record lows.. Nigeria is Africa's largest economy in terms of GDP (gross domestic product).. Parliament recently green lighted President Muhammadu Buhari's request for $22.7 billion in foreign borrowing, but while external debt accumulation would usually be expected to support reserves, de Hart suggested that the sharp fall in global oil prices could potentially "more than offset" the boost.. "We believe the CBN will continue to provide support in the near term, with a more drastic adjustment more likely in Q3," de Hart projected..