Africa’s resource-dependent economies are braced for a slowdown as coronavirus hits demand from one of their biggest buyers, China, sending oil prices lower and prompting the International Monetary Fund to downgrade growth forecasts for Nigeria, the continent’s largest economy.

The IMF late on Monday slashed its economic growth forecast for Nigeria, citing falling oil prices, as it urged Africa’s biggest crude producer to diversify its oil-dependent economy. Oil still provides more than half of Nigerian government revenues and 94 per cent of its foreign exchange, according to the IMF.

Oil prices have fallen about 13 per cent this year on plunging Chinese demand, reflecting a a slowdown in economic activity caused by the coronavirus outbreak. “Every $10 drop in oil prices costs Nigeria about $500m per month in lost export revenue,” said John Ashbourne, economist at London-based Capital Economics.