Oil War Will Affect Nigeria Adversely – Expert
Following the depletion of the country’s reserves to $36 billion amidst the falling global oil price as a result of the coronavirus pandemic, a political economist, Remi Adekoya has criticized the federal government for not saving for the rainy day.
Brent oil price as of Tuesday rose to $36. 72 per barrel from $31.1 per barrel, the price at which the global oil price benchmark sold for on Monday.
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Adekoya, a Polish-Nigerian expert at the Department of Politics and International relations, University of Sheffield, has argued on twitter that Nigeria would suffer most from the oil war after it had depleted its $36.22 billion (N11.12 trillion) reserve.
He further condemned the rate at which the federal government was accumulating debt, stressing that the next generation would be tied to the debt.
According to him, “Just like 1980 & 2014, Nigerian government fails to save for rainy day. Condemning next generation to debt-trap.”
Nigeria had in January 2020 and February 2020 secured approval for $3 billion and $22.7 billion external loan, including from the world bank.
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The Debt Management Office (DMO) dated the country’s debt profile as of 30 September 2019 to the tune of $85.35 billion (N26.2 trillion), this is excluding the new loans.
Countries That May Be Hit Hard By Oil War And Forex Reserves
- Russia: $570b
- Saudi Arabia: $501b
- Iran: $132b
- UAE: $107b
- Libya: $69b
- Algeria: $65b
- Nigeria: $36.22 b.
