The Size and Sustainability of Nigerian Current Account Deficits

Information about Sub-Saharan Africa África subsahariana

Journal Issue

Volume/Issue:: 2001/87
Series:: IMF Working Papers
Author(s):: Olumuyiwa Adedeji
Publisher:: INTERNATIONAL MONETARY FUND
Published Date:: June 2001
DOI:: http://dx.doi.org/10.5089/9781451851021.001
ISBN:: 9781451851021
ISSN:: 1018-5941
Page:: 33

This paper uses an intertemporal model of the current account and macroeconomic indicators to examine the size and sustainability of Nigerian current account deficits over the 1960-97 period. The results indicate that the Nigerian economy appeared to satisfy its intertemporal budget constraint during this period. However there were years marked by excessive current account deficits. The results also support the view that current account deficits accompanied by macroeconomic instability and structural weaknesses can degenerate in to an external crisis.

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