Nigeria’s budget deficit is set to narrow sharply this year as oil revenues increase and the government fails to meet ambitious capital spending plans. The shortfall should be easily covered by domestic borrowing but, if we’re right in expecting oil prices to fall over the course of 2022, the deficit will start widening again and policymakers may revert to direct financing by the central bank.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services