The 6 Major Setbacks in Nigeria’s Economy

(By Olakunle Somoye)

Due to the collapse of our refineries, Nigeria still imports refined oil in this 21st century, however this problem would be tackled when there are ground laws for private refinery establishment. The Petroleum Industry Bill (PIB), which provides for the establishment of the legal and regulatory framework and comprehensive guidelines for the operation of the upstream and downstream sectors of the Nigerian Petroleum Industry, is stuck in the national assembly.

Depletion of excess crude oil account from $13b to $4.1b 2: The Fall in oil prices from $104 per barrel to $82 with a national budget benchmark of $77.50 is a major setback for us because 90% of our revenue generation comes from Crude Oil however there is a little detail people failed to observe in the benchmark of sales of oil to 77.50 so Opec price which is $82 minus Nigeria’s benchmark price $77.50 and you find out there is a deficit of 4.5

  1. Nigeria’s principal buyer (USA) stopped buying our sweet Bonny light crude oil (BLCO) from a peak demand of 41.76 million per barrels to 1.4 million this august. the drop has been drastic in the last year since the US applied the fracking drilling technique to exploit shale oil. Now the US is producing almost nine million barrels per day and there is talk that it may export by next year.
  2. DROP IN NIGERIA’S OIL RESERVES: OPEC’s 2014 Annual Statistical Bulletin reports that between 2009 and 2011 Nigeria’s proven crude oil reserves stood at 37.20 billion. It dropped to 37.14 billion in 2012 and further dropped to 37.07 billion in 2013 *kilode President Goodluck IT IS OUR OIL Jonathan*
  3. LACK OF REFINERIES TO MEET OIL DEMANDS: Due to the collapse of our refineries, Nigeria still imports refined oil in this 21st century, however this problem would be tackled when there are ground laws for private refinery establishment. The Petroleum Industry Bill (PIB), which provides for the establishment of the legal and regulatory framework and comprehensive guidelines for the operation of the upstream and downstream sectors of the Nigerian Petroleum Industry, is stuck in the national assembly..
  4. DEVALUATION OF NAIRA: According to the CBN monetary policy the naira will now exchange officially from N155 to $1 to N168 to $1. How unfortunate, fellow contractors, how much is in the black market because we all know the bank won’t sell Dollars to you for your business? Contrary to what Mr Godwin Emiefiele said, I personally disagree that the CBN under his care is efficient enough to manage the financial system.

When you’re educated and you can read, you are expected to use your medulla and put pieces of puzzles together and make your stand on an ISSUE and the pressing ISSUE we have now is LEADERSHIP and GoodLuck Ebele Jonathan lacks everything it takes to be a good leader! To those who are still in doubt, PAY ATTENTION and do something most people are not good at, THINK!

– Olakunle Somoye Secretary general Professional Youths for Good Governance of Nigeria – PYGGN

Source: Abusidiqu

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