Nigeria oil industry on brink of collapse

The year started out as very promising, Nigeria's crude oil and gas export sales revenue hit a record USD434.85 million in January. That was apparently the best the sector would do this year. It is estimated that the country’s oil revenue is likely to decline by 80 percent this year.  In fact oil export volume is projected to fall to 1.3 million barrels per day. For a country where oil represents 90 percent of the country's exports, 30 percent of bank credits and 50 percent of fiscal revenues, an 80 percent fall (USD17 billion) spells doom not only for the sector but the economy as a whole. The prediction is made by the country’s high profile and member of the Economic Advisory Council, Mr. Bismarck Rewane in a report titled: "Making Hay While the Sun Has Set." "The federal government is struggling with the reduction and elimination of subsidies without sparking social unrest. Tax collection, mobilisation and prudent management of tax revenues will be topmost priorities,” he said. https://theexchange.africa/industry-and-trade/west-africas-cocoa-coup-and-what-it-could-mean-for-the-continent/ Nigeria’s total external debt has risen to USD 31 billion and is expected to rise to USD36 billion with more lending from multilateral companies. Debt service burden is already in excess