The coronavirus pandemic has not only caused fear among us, but a decline in revenue from sources of income.
The Nigerian economy is currently taking a hit from the collapse in oil prices, leaving Africa’s largest economy more threatened than ever, seeing as its primary source of income dependence is crude oil.
In recent days we’ve seen the crude market rise a little, going above $30 a barrel, however, the future remains uncertain for Nigeria.
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“Nigeria is facing the twin challenge of the COVID-19 pandemic as well as the crash of the crude oil price. For Nigeria, it’s a double whammy,” finance minister Zainab Ahmed said last week.
“Globally the crude oil market is very slow and we are not able to sell as much crude as we used to do before.”
This crisis isn’t only affecting Nigeria, but other oils whose economies rely on the producion of crude oil.
Experts and insiders disclosed to AFP, that Nigerian oil currently sells for around $10 less than Bent crude.
In April 2020, Bloomberg reported that the price of Nigerian crude was as low as $12, which is a huge decline from the $57 target figure the government based its budget on, prior to the COVID-19 pandemic.
