Ministry of finance, CBN silent as panic grips markets over oil price crash

Nigeria’s ministry of finance and the Central Bank on Monday stayed mute over while panic gripped investors and the public over the oil price crash.

The Central Bank’s spokesperson Isaac Okorafor told BusinessDay that there is “no official statement”.

Following the outbreak of coronavirus in China, Oil price (Brent Crude) has fallen to as low as $35 per barrel on Monday, from the peak of $68/barrel in January 2020, which is below the $57/ barrel budget benchmark of the Nigerian government.

The foreign exchange is at higher risk as some Nigerians are buying dollars in anticipation for a currency devaluation.

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“These are tough times for Nigeria, once again caused by outside forces,” said Charles Robertson, global chief economist at Renaissance Capital.

He said the authorities have a difficult choice between cutting spending on much needed investment, or maintaining spending by allowing the naira to depreciate in the NAFEX market, and sooner or later the latter is likely. Investors will be worried about investing in Nigeria when the oil price is this low.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.