Nigeria\u2019s revenue fell last month to the lowest level in more than five<\/p>\n
years as taxes and oil earnings dropped, making it more difficult for the
\ngovernment of Africa\u2019s largest economy to pay public workers.<\/p>\n
The country\u2019s federal, state and local governments were altogether
\nallocated 300 billion naira ($1.5 billion) in March, the Ministry of
\nFinance said in a statement e-mailed late Thursday from the capital,
\nAbuja. To assist the lower-tier governments, the ministry also waived 10.9
\nbillion naira of loan repayments.<\/p>\n
About 27 of 36 states are \u201ccurrently experiencing challenges meeting their
\nsalary payments,\u201d the ministry said. \u201cWe are not able to guarantee that
\nall states will be able to meet their salary obligations.\u201d<\/p>\n
Nigeria, Africa\u2019s biggest oil producer, has been hammered by crude prices
\nfalling 60 percent since mid-2014 to about $45 a barrel. The economy grew
\n2.8 percent last year, the slowest since 1999. That pace will probably
\nfalter further to 2.3 percent in 2016, the International Monetary Fund
\nsaid last month.
\nA decision by the government in the nation of 180 million people to peg
\nits currency even as oil revenue falls has been blamed by analysts for
\nworsening the crisis. Foreign investors are shunning the country\u2019s bonds
\nand stocks until there\u2019s a devaluation, while local businesses are
\nstruggling to import essential raw materials.<\/p>\n
\u201cThis is another by-product of a broken foreign exchange policy,\u201d Alan
\nCameron, an economist at Exotix Partners LLP in London, said by phone on
\nFriday. \u201cUnpaid civil service salaries have the potential to turn into a
\nbig social and political problem because for every salary paid there are
\nlikely to be several more people who rely on it.\u201d<\/p>\n
The central bank has kept the naira\u2019s official rate at 197-199 against the
\ndollar since March 2015, causing a rationing of foreign exchange to
\nbusinesses which has led to shortages of goods from gasoline to milk and
\nhas sent the local currency plunging to 320 on the black market.<\/p>\n
Not Convinced<\/p>\n
President Muhammadu Buhari, 73, has made it clear that he, not the central
\nbank, has the final say on currency policy \u2014 and that just as he was
\nduring his first stint in power as a military ruler in the 1980s. The
\nformer general is loath to be seen by voters as capitulating to foreign
\ninvestors and the IMF, both vocal critics of his stance.<\/p>\n
Buhari reiterated on Friday that he has yet to be convinced that a weaker
\nnaira will have any tangible benefit to most Nigerians in the import
\ndependent country. He said in a statement that a previous devaluation
\nafter he was deposed in a 1985 coup didn\u2019t lead to the creation of jobs or
\nnew industry.<\/p>\n
\u201cWhen I was military head of state, the IMF and the World Bank wanted us
\nto devalue the naira,\u201d Buhari said. \u201cBut I stood my ground for the good of
\nNigeria.\u201d<\/p>\n
Bloomberg<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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