The oil price crash globally has unsettled the economies of petroleum producing countries. Nigeria being Africa’s oil king has felt the wrath of the oil price crash and as such, analysts are predicting a rough year ahead. Nigeria produces over 2 million barrels per day, making it Africa’s largest producer of crude. Crude oil prices have fallen to $35 a barrel from a peak of $100 a barrel in 2014 and this has greatly affected the Nigerian economy which was dependent on oil.
Bismarck Rewane, chief executive of Lagos-based advisory firm Financial Derivatives Co., said, taht the imapct of the oil price crash was catastrophic to an economy that was totally not pepared for such a fall. 70 percent of government revenue was being derived from crude oil sales, while petroleum made up 69 percent of exports. The over reliance on petrodollars has thus put Nigeria in a vulnerable position. Rewane said that the government maybe forced to defer some of its promised projects if they continued spending recklessly on luxuries.
 

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