Due the current level of dollar scarcity, the Nigerian biggest domestic vehicle assembly firm’s activities have been paused. Dozens of white buses stand at the end of the production line, expected to ply some roads on the continent, but unfortunately they are going now where.
As a result dolar starvation, the Innoson Vehicle Manufacturing (IVM) cannot buy imported components, leaving the buses without engines – a metaphor for the problems afflicting Africa’s most populous nation – Nigeria.
The poor state of the manufacturing sector in particular is a blow to President Muhammadu Buhari, who has been pushing hard to wean Nigeria off its dependence on crude oil sales, which make up 70 percent of government revenues.
GDP figures on Wednesday confirmed that the continent’s biggest economy slid into its first recession in 25 years in the second quarter, shrinking by 2.06 percent after a 0.36 percent contraction in the first three months of the year.