Coronavirus Create a Perfect Storm for Nigeria’s Economy

45
Refinery

 

By Joe Parkinson and Benoit Faucon

The plunge in oil prices and the economic fallout from the covid-19 together pose what could be an existential threat for Africa’s largest economy and biggest crude producer.

Nigeria, with a population of 200 million people, is slashing production faster than any other major oil economy following the plunge in global oil prices. Cargo ships full of millions of barrels of Nigerian crude have nowhere to go, with much of the world on lockdown. Nigerian oil companies are desperately competing to fill the last few empty tankers still left at sea.

The result is a twin shock for an economy that has become a symbol of how virus-induced economic pain is now cascading from wealthy nations to the developing world.

“When there’s no more vessels to load the crude, then the entire world collapses,” said Kola Karim, chairman of Shoreline, Nigeria’s third-largest oil producer. “You will have serious, serious security implications. Unrest.”

Across the global south, the sequencing of the virus has been inverted, with countries in Africa, South Asia and Latin America suffering an economic crisis before an exponential rise in virus cases. Dozens of developing nations are now forecast to suffer their greatest economic declines on record despite having relatively few confirmed coronavirus cases.

In Nigeria, where oil accounts for 60% of government revenue and 90% of foreign exchange, the government has already slashed its 2020 budget by $5 billion and approached the International Monetary Fund for $7 billion in emergency funding. Nigeria’s break-even oil price is $133, the highest in the world due to high refining costs and government corruption, according to Fitch Ratings. Now, with prices for several oil benchmarks having fallen below zero, Nigeria is generating losses for every barrel it produces.

At least seven vessels carrying 12 million barrels of unsold Nigerian oil—seven days of production—are currently stranded at sea, according to data-analytics company Vortexa. The tankers come from production from fields run by Royal Dutch Shell PLC and Exxom Mobile Corp.

In one case, a tanker was redirected away from the U.S. Gulf Coast. It headed to the Canary Islands, where other Nigerian-hired ships are idled, the data showed.

But stopping the pumps is also risky, industry experts say, because some wells are too old to be restarted once they go idle. Once it runs out of ships willing to collect its crude, it may be forced to permanently close the taps on decades-old wells that were meant to lift the country up from poverty.

“Nigeria is a drug addict about to go cold turkey,” said Matthew Page, a former state department official in Nigeria now at London-based think tank Chatham House. “Its governmental structures, predicated on dividing up the national cake of petroleum revenues, are now unsustainable.”

While producers all over the world are hit by the oil rout, Nigeria is an outlier in the global oil market: an oil-dependent economy with the production costs of an industrialized nation.

Oil Minister Timipre Sylva said in an interview that Nigeria is cutting output by 23% this month and some streams have shut down as they are no longer economically viable. “We are not comfortable. But I believe we are at the rough bottom,” he said. “We can only go up.” (Wall Street Journal)

45 thoughts on “Coronavirus Create a Perfect Storm for Nigeria’s Economy

  1. What i do not realize is in truth how you’re not really much more well-liked than you might be now.
    You’re very intelligent. You realize thus considerably with regards to
    this matter, produced me in my opinion consider it from a lot of numerous angles.
    Its like men and women aren’t involved until it’s something to do with Lady gaga!
    Your own stuffs excellent. Always take care of it up! maglie calcio Argentina 2021

  2. Hello there! This article couldn’t be written any better!

    Looking at this article reminds me of my previous roommate!
    He continually kept talking about this. I’ll forward this article to him.

    Fairly certain he will have a very good read. Thank you for
    sharing! Maglie napoli

  3. This is the perfect site for anybody who really wants to understand this topic.
    You know so much its almost tough to argue with you (not that I actually will
    need to…HaHa). You certainly put a fresh spin on a
    subject that has been written about for years. Great stuff,
    just great! Fodboldtrøjer Tilbud

  4. Heya just wanted to give you a brief heads up and let you know a few
    of the images aren’t loading properly. I’m not sure why but I think its a linking issue.
    I’ve tried it in two different web browsers and both show the same results.

    fotbollströjor

  5. Undeniably imagine that that you said. Your favorite reason appeared to be
    on the internet the easiest factor to take into account of.
    I say to you, I definitely get annoyed at
    the same time as other people think about worries that they plainly
    do not realize about. You controlled to hit the nail
    upon the top as well as defined out the entire thing with no need side-effects , other people could take a signal.
    Will probably be back to get more. Thanks Real Madrid Trikot

  6. This design is wicked! You certainly know how to keep a reader entertained.
    Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Wonderful job.
    I really enjoyed what you had to say, and more than that, how you presented it.
    Too cool! Camiseta Juventus

  7. Hey there! Quick question that’s completely off topic.

    Do you know how to make your site mobile friendly?
    My weblog looks weird when viewing from my iphone 4.
    I’m trying to find a theme or plugin that might be able
    to resolve this problem. If you have any recommendations, please share.
    Appreciate it!
    Atletico Madrid Kläder

  8. I’m really loving the theme/design of your web site. Do you ever run into any browser compatibility problems?
    A few of my blog audience have complained about my website not operating correctly in Explorer but
    looks great in Opera. Do you have any recommendations to help fix this issue?

    Werder Bremen trikot

  9. © 2021 Компания HARTMANN · Создавая здоровое будущее Для Вашего удобства Вы можете записаться на приём, заполнив форму. Если Вы не знаете точно, какое направление выбрать, просто пропустите данный пункт. Наш сотрудник свяжется с Вами для подтверждения записи, поможет согласовать точное время и, при необходимости, сориентирует, к какому специалисту оптимальнее обратиться. Диагноз гонококкового уретрита базируется на результатах микроскопического (окраска по Граму) или культу рал ьного (обнаружение N. gonorrhoeae) исследований, в то время как диагноз негонококкового уретрита требует таких доказательств, как наличие клинических симптомов заболевания и (или) обнаружения полиморфноядерных лейкоцитов в материале уретры (при отсутствии N. gonorrhoeae) . Отличительной особенностью симптоматики воспалений уретры у мужчин выступает более тяжелая форма и наличие большего числа осложнений, что связанно с анатомическими особенностями пораженного органа. Лечение уретритов во многом зависит от правильности поставленного диагноза (инфекции, вызвавшей воспаление, длительности течения воспалительного процесса, локализации, иммунного статуса организма и вовлечения в процесс близлежащих органов). Прогноз лечения, как правило, благоприятный. http://juntendo-english.jp/forums/user/b6mwusg656/ Покупка таблеток виагры в Украине Многие мужчины в Киеве интересуются этим средством. Что еще мы можем вам предложить? В некоторых случаях речь идет об очень существенной экономии. Всего-то нужно выпить, немного подождать — и вы уже секс-гигант, мечта любой девушки. Выберите индийские дженерики, которые дешево стоят и ничем не уступают брендовым препаратам. В составе содержится активный компонент под названием силденафила цитрат. Концентрация в одной таблетке мг, чего более чем достаточно для мужчины с весом до кг. Выберите индийские дженерики, которые дешево стоят и ничем не уступают брендовым препаратам. В составе содержится активный компонент под названием силденафила цитрат. Концентрация в одной таблетке мг, чего более чем достаточно для мужчины с весом до кг. Превышение предельно допустимой дозы чревато проявлением широкого спектра побочных явлений в ярко выраженной форме. Я хоть и молодой – но с потенцией проблемы уже, стрессы вечные. Ухудшение зрения. А то один раз не получилось – депресняк прям начался. Какой состав Виагры? Во всех случаях, прежде чем выслать, наш представитель свяжется с Вами для подтверждения. Если Вы уже делали у нас покупки, подтверждение не потребуется. Сроки Москва, Санкт-Петербург – на следующий день после подтверждения, если заказ оформлен до

  10. Oma kokemus casinoheroekselta: Tositosi hidas kotiutus mennyt jo 3 paivaa nostosta ja kysessa skrill. kaikki dokut on lahetetty aikoja sitten. Panttaavat rahoja ilman mitaan syyta. Kertovat chatissa nain tyhman syyn : Talla viikolla casinolla on moni voittanut niin taman takia kestaa. 😀 ei voi muutakun nauraa sisaisesti. Noh oli viimenen kerta kun depoa tuonne puljuun laitan kun ei tieda koska sielta rahat tulevat. muissa casinoissa tullut instana skrilliin 4 tunnin sisalla. ja pankilla paivisin samoihin aikoihin tai seuraavana aamuna.,, https://wiki-wire.win/index.php/1_euro_deposit_casino Swift Casinon live-jalleenmyyjaosio, jossa on yli 190 huippuluokan nimiketta Evolutionilta ja Pragmatic Playlta, ei tuottanut meille minkaanlaista pettymysta. Vierailijat paasevat nauttimaan upeista valinnoista, kuten Wheel of Fortune, Deal or No Deal ja Dream Catcher. Lisaksi tarjolla on runsaasti live-ruletin, blackjackin, baccaratin ja pokerin variantteja. 950 N Main Plaza Dr,Cornelia,GA 30531Phone: (706) 778-5564 Lista de 23+ casinos que aceptan PayPal en Deposita desde PC o movil ? ?Obten BONO casinot joissa kay paypal de PayPal casino hasta €1200! Katso uusi Neteller casino -lista.

  11. A small allocation to gold may be useful as a crisis or inflation hedge. Cryptocurrency seems to have no immediate use other than as a way to shield transactions from the tax department. And that’s exactly what it’s widely used for – it’s particularly in favour with the criminal element for money laundering and other applications where anonymity is a must. You can be sure that governments the world over are putting cryptocurrency under the microscope, and it’s a fair bet that their days as an unregulated, anonymous currency wild west show are numbered. In purely investment terms, cryptocurrencies are a non-producing asset. They don’t pay interest or dividends. What about capital gain? Possibly. Certainly since the beginning of this year cryptocurrencies have skyrocketed in value. Bitcoin, for example, was valued at around US$57,000 as of March 18. That’s up from about $29,000 at the beginning of the year, and from $5,900 a year ago. But that will only be of importance to someone who owned Bitcoin a year ago or on Jan. 1 this year.  https://www.metabuilding.com/forum/profile/lucretiabeale3/ Bitcoin blackjack games aren’t that hard to play, but reaching them is a tedious task. But don’t worry, because we are here to guide you about the things you should do to start playing in a BTC casino right away. JACK A Bitcoin casino will help you find an exchange from where you can buy BTC and use it on playing your favourite card games. I naturally take some time to play blackjack before I recommend a casino site, too. What I look for is popular versions of the game that I know offer a great house edge and let you use your skill and understanding of Blackjack to win. Oshi Casino – This online bitcoin blackjack casino offers a generous amount of 180 free spins to its members. Along with this is the 5 BTC bonus that is waiting for those who qualify for the requirements. For their blackjack games, they have around 20 variants that are all very unique and plays well.

  12. Kun ja jos voitat CasinoHeroesilta, on heilla varsin nopeat voittojen nostot. Tama Casino Heroes arvostelu alkaa siita, etta kerromme sinulle, kuinka paaset kasinon jaseneksi. CasinoHeroes antaa sinulle kaksi vaihtoehtoa, kun haluat aloittaa kasinoseikkailun. Kyseessa on nimittain rekisteroinnista vapaa nettikasino, mutta myos se perinteinen rekisterointi onnistuu. Jos et halua suorittaa rekisterointia, paaset kirjautumaan sisaan pankkitunnuksilla. Jos valitset toisen vaihtoehdon, ei sekaan vie kauaa aikaasi, ja olet jo pian suorittanut rekisteroinnin. Se tehdaan kolmen askeleen kautta. http://decoyrental.com/community/profile/kayleighrivero0/ Live chatia kannattaa hyodyntaa jos tulee yhtaan mitaan mika mietityttaa. Kokemuksia Bethardin asiakaspalvelusta on keraantynyt useammalta kerralta ja aina on palvelu ollut todella asiantuntevaa ja ystavallista. Bethard kasino tarjoaa pelaamiselle hyvat ja turvalliset puitteet. Tyylikkaalla ja helppokayttoisella sivustolla navigointi on miellyttavaa ja kaikki tarpeellinen loytyy vaivatta niin tietokoneella kuin mobiilissakin. Kasinon luotettavuudesta kertoo sen hallussaan pitama toimilupa, jonka on myontanyt pelialalla hyvassa maineessa oleva Malta Gaming Authority. Koska Malta on EU-maa, on jokainen Bethard kotiutus taysin verovapaa suomalaisille pelaajille.

  13. Whichever way you decide to play, you’re sure to have a blast. It’s similar to the board game Balderdash—or the recently popular Fibbage series of Jackbox games! The most played card game all around the world. Choose the best strategy and beat your opponents. OK, so Oregon Trail might be just a one-player game, but nothing is stopping you from playing while on the phone or video chatting with your friends! Just start at the same time and narrate your journey to one another. You can play online for free and try to avoid dysentery at all costs. https://www.groovalicious.org/community/profile/samara48v966391/ Pro(s): Only 1 person needs the game to host, while the other players can play on their own devices. You won’t need to explain the instructions for each game as this will be provided when it starts. Multiple games, each with a high replay value since it relies on user input; prompts hardly repeat. Can be as scandalous as you want it to be.

Leave a Reply

Your email address will not be published. Required fields are marked *