Nigeria: 3 Yrs of Low Oil Price and Nigeria’s Struggle for Survival

2 Aug 2017   Nigeria

After trading at over U.S.$100 per barrel for some years, the price of oil began to tomble down around July, 2014, falling to below U.S.$30 per barrel. The collapse of the price of crude created serious economic crisis for oil-reliant countries, including Nigeria. It was not unexpected that Nigeria became one of the countries most affected by the downturn. Central to the economic crisis that would later befall the country was her over reliance on oil. Oil accounts for 69 per cent of exports, according to the National Bureau of Statistics (NBS) and around 70 per cent of government revenue. The impact started to be felt at the most unfavourable period, at the crucial time a new administration had just come into office. The slump in crude prices, Nigeria’s mainstay, hammered the country’s earnings, leading to a significant decline in the country’s foreign reserves and a free fall of […]

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