Just as Nigeria is beginning to count her gains on steady crude oil production as well as increased foreign exchange earnings, the current uncertainties surrounding the crude oil market may spell doom for the country and its fragile economy in no distant time.
The current problem has nothing to do with Niger Delta militants but the rising production of Shale oil in the United States of America. The amount of shale oil pumped into the market by the US has in no doubt sent jitters to the spines of OPEC members that opted for production cut with the aim of reducing excessive supply few months back.
The sharp slide saw oil price fall to its lowest this year.
Experts says the current trend isn’t good for Nigeria, a country that generate 90% of her foreign earnings from crude oil coupled with the fact that she is still struggling to get out of recession. They are of the view that if the current trend continues, the newly celebrated robust foreign reserves of over $30 billion may be depleted in no distant time.
This is certainly not good at a time when the Central Bank of Nigeria is trying to inject foreign exchange into the system. A continued fall in oil price would make it almost impossible for the apex bank to sustained the current injection it is currently carrying out.
You will recall that Nigerian government suffered some losses mid last year when Niger Delta militants hit several oil facilities and brought the country to her knees.
In your own opinion, don’t you think it’s high time we diversified our economy and stop keeping all our eggs in one basket?
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