In Angola, the Republic of Congo and Equatorial Guinea, the oil industry accounts for 75 per cent of government revenue, while in Nigeria oil still accounts for more than 70 per cent of the national budget, leaving public institutions exposed should low oil prices persist for some time.
Although low oil prices could boost consumption, their impact on growth could be mixed, with oil-exporting countries particularly vulnerable and they may be negatively affected by these developments in the form of deteriorating fiscal and external balances. This may further result in sovereign wealth liquidating some of their investment holdings.