Iweala said "the oil price collapse is by far the biggest component of the external shock that has hit" the country and urged Nigeria to "take steps to diversify its economy as part of its response to the current crisis."

"The crisis (...) is an opportunity to diversify and re-position the economy for steadier long-run growth," Iweala told a discussion in Abuja on the "Global Financial Crisis: Impact and Implications for Nigeria."

Iweala also said that foreign direct investment (FDI) and remittances to Nigeria would decline over this year and next compared with the level of 2008.

"The sum of FDI and remittances is expected to fall to around six billion dollars in 2009 from 8.2 billion dollars in 2008," said the former Nigerian finance minister.

Iweala said that net FDI more than doubled from an annual average of around three billion dollars over 2001-2004 to 7.25 billion dollars over 2005-2007.

"The bulk of FDI goes into oil and gas, banking and telecoms, so a sharp slowdown should not be surprising," Iweala said, describing as "worrisome" stagnant agricultural production.

The farm sector is the only one that could power non-oil growth, she said.
 
Source:AFP