President Buhari: Nigeria 'has become poor' as South Africa regains largest economy title

Nigerian President Muhammadu Buhari has
acknowledged his country has become poorer
since he took office in 2015. The leader made
the remarks as Nigeria's economy is
deteriorating due to a fall in oil production and
prices.
"It has been a very difficult year for Nigeria.
Before we came to office, petroleum sold for
about $100 (£77) per barrel. Then it crashed to
$37, and now oscillates between $40 and $45
per barrel," the leader said, according to a
statement by his spokesperson Femi Adesina.
"Suddenly, we're a poor country, but
commitment to transparency and
accountability is not making people know that
there is severe shortage."

Earlier in May, Nigeria announced petrol prices
would rise by two-thirds in a bid to cut oil
subsidy. The country's lack of refineries means
it has to export about 90% of its crude oil and
import back petroleum products at international
prices. The government then sells fuel to
Nigerians at subsidised rates and reimburses
the difference to importers.
The move has angered many, with trade and
labour unions labelling the decision "criminal"
and calling for a strike. However, some
analysts believe the decision was a risk worth
taking to solve the country's problems of
costly subsidy, fuel shortages and oil theft.

South Africa regains biggest Economy Title

Buhari's remarks came as South Africa
regained the title of Africa's largest economy,
a position held by Nigeria for the past two
years.
South Africa's rand has regained strength
against the dollar. On the other hand, the naira
has weakened after the country removed its
currency peg against the dollar in June.
However,some economists have warned both
countries could be on the brink of
recession.South Africa's GDP is $301bn, while
Nigeria's is $296bn as per data by the
International Monetary Fund.