Nigeria might lose N2trn over low oil price – OPTS | Independent Newspapers Limited
Newsletter subscribe

Business, Power

Nigeria might lose N2trn over low oil price – OPTS

Posted: Apr 28, 2015 at 2:53 am   /   by   /   comments (0)

Oil majors in Nigeria, under the aegis of Oil Producer Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI), has warned that Nigeria is at the risk of losing $10 billion, about N2 trillion of its revenue from oil and gas in 2015, unless a significant improvement is recorded in the prices of crude oil in the international market.

“We estimate that if crude oil prices average $53 per barrel in 2015, compared to $77.5 per barrel in 2014, the Federal Government of Nigeria’s oil and gas revenue will decline by an equivalent of $10 billion this year, or a gut-wrenching equivalent of 30 per cent,” said Elisabeth Proust, Chairperson of the OPTS.

Proust, who spoke at the Society for Petroleum Engineers’ (SPE) 2015 Oloibiri Lecture Series in Abuja, noted that the country has already started feeling the impact of the low oil price, as evident in the slowing down or outright cancellation of a number of infrastructure projects across the country.

She said low crude oil prices have significantly reduced the level of investable funds of the operators, especially at a time when competition for investments is sharpening and has also made it very difficult for the Federal Government to meet its Joint Venture funding needs.