Group Managing Director of Nigerian National Petroleum Corporation (NNPC) Wednesday warned Nigerians to prepare for more economic trouble in view of the current multi-year low level of crude price in the international market.
A spread of COVID-19 across over 90 countries forcing the shut-down of large economies coupled with price war declared by Saudi Arabia aimed at punishing Russia because of its refusal to acceded to further production cuts resulted in the lowest oil prices since 1999.
At the Second Consultative Roundtable with Central Bank of Nigeria (CBN) Governor tagged Going for Growth 2 in Abuja, the richest black man on earth, Alhaji Aliko Dangote also expressed disappointment at the perennial mouthing of plans to diversify the economy once there was a crash in oil prices.
Mele emphasized that the oil industry was the most important sector of the economy but lamented that Nigerian banks were still too limited to finance it.
He advised Nigerians to prepare for at least three months of hardship for the economy even if the market recovered from the price shock immediately as it would take time for the effect to wear off warning “we must assume that prices will remain low”.
The assumption for this year is 60$ per barrel crude oil price as an average now we are facing 30 and we haven’t seen the bottom.
“Today there over 12 LPG cargos stranded globally because they have no hub because of the abrupt collapse in demand associated specifically with coronavirus.
“It is obvious and it has also hit other sectors from the production stage which is the liquid crude.