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What impact is the crisis in the global financial system having on Nigerias economy?

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What impact is the crisis in the global financial system having on Nigerias economy?

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The reason for the crisis in the global financial system was primarily due to sub-prime mortgage default by low income earners. The Nigerian economy is however somewhat insulated from the global credit crisis since our banks were not involved in advancement of lending facilities with regards to sub-prime mortgages. During 1994 only 5% of total US mortgages were classified as sub-prime but by 2006 that proportion had risen to over 20%. Africa and Nigeria had no dealings with this although before the recent huge bail-out packages all over the world, the general economic downturn started taking its toll on oil prices which saw the price crash from an all-time high of US$147 per barrel to its 13-month low of $77.70 recently. This caused a set-back in the preparation of the 2009 budget as to what benchmark price to use. Nigeria is heavily dependent on oil revenues and if the oil prices keep going down, government plans for the economy may be hampered. 2) Do you think the financial crisis wi

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