International records / International Monetary Fund

Macroeconomic Implications of Climate Challenges: Nigeria

Climate events significantly impact Nigeria's growth outlook, fiscal sustainability, balance of payments and financial sector, potentially undermining macroeconomic stability. Extreme weather events and their frequency have a direct effect on growth and the balance of payments. An expected sea level rise would pose significant economic cost for Nigeria, damaging infrastructure in coastal areas such as Lagos—the main commercial and financial center. While relatively small, the financial sector is exposed to spillovers to asset quality and may even be directly impacted via its physical presence …