Oil Price Slump Negatively Effect Affects on Nigeria’s Economy

According to Vanguard, a media company, Nigeria is likely to face tough times ahead, considering the trend of falling crude oil prices, exacerbated by the global economic hit caused by the Coronavirus.

Oil and gas represent over 90 percent of the country’s foreign exchange earnings and more than 60 percent of oil related income.

With the slowdown in petroleum consumption in key economies (such as China, India, Japan, France, among others) driven by overall restrictions imposed to contain spread of the virus, demand for crude oil is likely to come-down.

This drop in demand, when coupled with the prevailing excess supply situation, is like...