World Economy

Nigeria Recession Slows Growth in Chad, Niger

Nigeria Recession Slows Growth in Chad, NigerNigeria Recession Slows Growth in Chad, Niger

Due to the intra-regional trade and remittance ties between Nigeria and neighboring countries, the economies of the Chad and Niger have been significantly affected by the economic downturn in Nigeria, the International Monetary Fund has said, reported. The IMF, in its latest staff report for the 2017 Article IV consultation on Nigeria, stated that in Chad, lower trade flows due to insecurity in the border region between both countries contributed to the underperformance in customs revenue. According to the fund, disruptions to trade flows, especially in food items, led to increased domestic prices for some products in Chad. According to the IMF, other countries affected are the Benin Republic and Togo. It added that naira depreciation encouraged smuggling of petrol and restricted the collection of tax revenue from formal consumption of the product in Benin, Niger and Togo. Niger, which sources about 65% of its electricity from Nigeria, had been subjected to periodic supply problems due to fuel and foreign exchange shortages, the fund added.

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