OIL PRICE PLUMMETS.PART 3

for the review of the budget to take account,negative impact of the outbreak on the national economy.Nigeria slipped into recession between April and June 2016 caused by critical fall in global oil prices,slipped from $112 per barrel in 2014 to below $50 by 2016.The nation though had recovered from the recession,President Muhammadu Buhari's pledge to diversify the Nigerian economy from being oil dependent had failed to materialise.There was still no cushion against short and long term shocks to the economy.To make the matters worse,the excess crude account fell to $71million in February from $2billion in 2018.According to Tope Fasua the country barely prepared for economic eventuality.It may mean that recession in Nigeria is certain,if oil prices plunge further to $30 per barrel."All other countries"according to him heavily prepared such as Saudi Arabia and Russia with sovereign wealth funds running into trillions of dollars"have enough reserves".Hence,Nigeria decided to borrow $22.7b.to cushion eventuality.