The oil market is at high risk pertaining to the coronavirus lockdown across the globe and the government officials of Nigeria said that as a result of it along with the dwindling oil revenues will result in the contraction of Nigeria’s economy by 3.4% this year.
The petroleum prices in Nigeria has dwindled to $20-a-barrel thus impacting the countries economy in the negative. The Nigeria’s blooming local oil sector has thus come under siege.
On May 5, Finance Minister Zainab Ahmed said Nigeria would be cutting its budget by around 15% and that major oil and gas projects would be delivered “much later than originally planned”.
Africa’s top oil exporter relies on crude oil sales for around 90% of foreign exchange earnings and more than half of government revenue.
In 2010, Nigeria passed a legislation to boost the number of locally-owned and managed companies in the multi-billion-dollar oil industry, overseen by the Nigerian Content Development and Monitoring Board, or NCDMB.