The Nigerian government rejected the $314 budget to organize the competition, slated to take place in November 2009.
"It is quite clear that in view of the current financial crisis, government alone cannot bear the cost," Information Minister John Odey said after a cabinet meeting. "We are exercising a lot of caution and prioritizing our needs."
Nigeria's huge foreign reserves -- in excess of $60 billion -- from oil income and its light debt burden make it rather stable, though the decline in oil prices should impact the country. Nigeria is the world's eighth largest producer of oil.