Connect with us

news

Fears for Nigeria’s Economy as Oil Prices Tumble

The current tumble in oil prices has further heightened fears and apprehension in the Nigerian economy, given its dependence on oil revenue.
Fears about early resuscitation of Nigeria’s economy has heightened as oil prices tumbled at the global market on Friday by more than three per cent after the Organisation of the Petroleum Exporting Countries said October output reached another record of 33.64 million barrels per day, up 240,000 bpd from September.

Nigeria, which largely depends on proceeds from its oil exports, is currently in economic recession, having recorded negative growth rate in its Gross Domestic Product in two consecutive quarters. This is reflected in drastic drop in income, employment, manufacturing and retail sales.

Although the Federal Government said it was already taking steps to take the country out of the economic mess, the continued militant attacks on oil installations in the Niger Delta and the new development in global oil market could frustrate the government’s efforts, according to experts.

Crude futures have wiped out gains made since the end of September when OPEC said it would agree to cut oil production to shore up persistently low prices, according to Reuters.

It said in a report on Friday that while investors had been sceptical that a deal to cut or freeze oil output levels would be reached at an OPEC meeting on November 30, an increasing amount of data had underscored a global skew towards oversupply.

It also noted that following the latest data, the cartel would have to trim up to a million barrels per day of output to make good on its promise to reduce production to between 32.50 million bpd and 33.0 million bpd.

It quoted a trader at Tyche Capital Advisors in New York, Mr. Tariq Zahir, as saying, “The next couple of weeks, even if they get a deal done, there’s so much oil coming to the market. Prices deserve to be here, maybe even a little lower.”

With oil price crashing to less than $50 per barrel, Nigeria’s production output has tumbled over 400,000 barrels due to militancy activities in the Niger Delta region. Oil production plummeted to 1.69 million barrels per day in the second quarter of 2016, down from 2.11 million barrel per day in the first quarter, with oil-based GDP contracting by 17.5 per cent in quarter two compared to 1.9 per cent in the first quarter.

As oil revenues dwindle, Nigeria has resorted to desperate measures including using crude to offset its debts.

For instance, the Federal Government recently said it had reached an outline settlement to resolve a protracted dispute with Western energy companies, under which the groups would be paid $5bn to cover exploration and production costs.

A report by Financial Times said Royal Dutch Shell, ExxonMobil, Eni, Chevron and Total had signed deals relating to the settlement of costs incurred between 2010 and 2015, as they also sought to forge new financing arrangements for their joint ventures in Nigeria.

The settlement, which would be a haircut on the over $6bn the oil majors claimed they were owed by Nigeria, would need the approval of two government bodies and the final sign-off from President Muhammadu Buhari, the report added.

Meanwhile, international Brent crude futures traded at $44.34 per barrel on Friday, down $1.50, or 3.27 per cent, its lowest since August.

The US West Texas Intermediate futures CLc1 were down by $1.51, or 3.4 per cent, to $43.14 per barrel.

The International Energy Agency has said the supply overhang could run into a third year in 2017, should OPEC fail to act.

In its monthly oil market report last Thursday, the IEA said global supply rose by 800,000 bpd in October to 97.8 million bpd, led by record OPEC output and rising production from non-OPEC members such as Russia, Brazil, Canada and Kazakhstan.

Siurce: Punch

Continue Reading
Click to comment

Leave a Reply

news

12-year-old boy kills landlady as condition to be initiated into a cult

Ethiope East Local

A 12-year-old boy, who allegedly robbed and killed his landlady at Abraka, Ethiope East Local Government Area, Delta State, yesterday, was among those paraded for various offences by the state Police Command, yesterday.

 

The state Commissioner of Police, Mr. Zanna Mohammed, who briefed reporters on the arrest of over 60 kidnappers, robbers, murderers, cultists and ritualists in the last three weeks, said the teenager confessed that he committed the act because a cult group told him that one of the conditions for initiation was that he must have been involved in a criminal act.

Continue Reading

Headlines

Super Falcons striker, Asisat Oshoala, comes to Falz defence with regards to statement about glorifying fraudsters

Asisat Oshoala

Nigerian professional footballer, Asisat Oshoala, who plays as a forward in the Chinese Women’s Super league for Dalian Quanjian F.C., took to her Instagram to express deep concern about how people are now proud to be fraudsters.

 

 

In Falz’ defense, she insisted fraudsters shouldn’t be glorified.

Continue Reading

Foreign

Zimbabwean Church leader in s*x scandal as photos naked photos and sex acts with 33 girls is exposed

Church leader
A Zimbabwean church leader, Nyasha Light Nyatsungo is enmeshed in a sex scandal and might also be facing legal action, after his ex-girlfriend flooded social media with his nude photo.
It was gathered that the Nyatsungo allegedly sent a nude picture of his Cape Town based ex–side chick, Shingi Mavenge, to his other girlfriend only identified as Beula who later broadcasted it on social media.
According to H-Metro, in an apparent fit of rage, Mavenge posted a WhatsApp chat she had with Nyatsungo’s wife identified as Nyasha Nhahumbi as well as a group chat with some of her former lover’s concubines.
According to Mavenge, she has gotten information that Nyatsungo has at least 33 girlfriends and has ditched his wife of eight years.
She adds that Nyatsungo bedded a girl who was their neighbour as well.
Mavenge said that the church leader’s wife revealed that they even consulted their local pastor in Mutare who failed in his attempts to mend Nyatsungo’s ways.
According to H-Metro, Nyatsungo, a married father of two, has denied ever circulating the picture, labelling Mavenge as a bitter woman whom he just flirted with on Facebook and nothing more.
“This Nyasha guy must be stopped in his tracks. He is going to pay for all the damage that he has done to me. He was the only one who had that leaked picture and I am shocked why he would forward it to some other girl,” fumed Mavhenge who is working on taking legal action.
 
“I started dating this guy in 2015 and never knew he was married. He lied.”  fumed Mavenge yesterday.
“That guy is full of lies and at some point, we opened a group chat with his wife and some of his girlfriends. He normally targets single mothers” added Mavenge.
H-Metro was furnished with six other cellphone numbers of his girlfriend that include Fadzai, Mutsa, Essy, Juliana, Barbra among others. Mutsa confirmed she once had a relationship with Nyatsungo have since terminated it since she discovered he was married.
Mavenge confirmed they met once in Johannesburg when she had to fly from Cape Town to meet her man sometime in April.
“That night he didn’t even have money. I had to pay the R800 for the accommodation as he had no money. He wanted to have sex with me but I flatly refused. He even wanted it without protection and I said No. he looked terrible with clothes in a plastic shopping bag. I want to write a letter to Pastor Rex who is the head of (the church) in Harare so that this guy be stopped with his tricks and lies,” added Mavenge.
When contacted over the phone in Mutare Nyatsungo confirmed he knew Mavenge but never had a relationship with her.
“I know her and we once flirted on Facebook. We never had a relationship as she is alleging. I don’t know why she is bitter. I haven’t seen the nude pictures she is talking about but I heard about it from Beula. We live in a democratic country. She can go ahead and sue me if she feels her rights have been infringed upon. All the allegations she is making are false and I don’t know her motive in trying to tarnish my image,” said Nyatsungo.
He said he was still with his wife whose phone rang without response yesterday afternoon. Despite his denials, H-metro was furnished with pictures of Nyatsungo and Mavenge, the time they met in April.

Continue Reading

Trending