Origin of Wia’s photo, Getty Images
Wetin we call dis foto, Brent crude dong rises to around $79, up 10% within a week according to sabi pipo in energy sector Article Information Author, Chukwunaeme Obiejesi and Abubakar Maccido Role, Reporter Report from Abuja and Kano 2024 October 7, 17:37 WAT
New information 1 hour ago
As the conflict between Israel and Iran continues, international oil prices are rising.
I think the good news for Nigeria is that it is almost entirely financed by oil exports, which means Contri is going to get more money.
Last Monday, September 30, 2024, after Iran launched around 200 missiles towards Israel, Brent crude oil dong prices rose more than 10% to around $79 per barrel.
Iran is the world’s seventh largest oil producer.
Bonnie Wright, Nigeria’s crude oil production is probably around $78 now, up from $73 seven days ago.
I believe that the rise in crude oil prices will have an impact on the Nigerian economy, but how long will this situation last?Will it have any impact on the rise in prices of petroleum products in Nigeria?
More foreign exchange for Nigeria?
Dr Abdulsalam Muhammad Kani told BBC Pidgin that Nigeria could benefit from recent developments, as happened several years ago.
For the 2024 budget, the federal government set a benchmark for crude oil at $78 per barrel. In other words, it is possible to achieve the standard value.
If the government reaches its estimated daily oil production, it will have enough to reduce the budget deficit and plan for the year.
“With proper planning, Nigeria’s economy will stabilize to a small extent if Moni continues to be able to take on jobs and access services without incurring debt,” Kani Toku said. said.
“We also believe that Nigeria will be able to earn additional dollars from oil sales, which will reduce currency pressures, but the dollar value will depreciate modestly against the naira.
“You know, almost everything we import in Nigeria is what we import and we make more dollars because we have to spend dollars to import into Contri, debaters,” Talk said. he said.
Oga-Kani further added that if the crisis in the Middle East continues, it will be good for the Nigerian economy as crude oil will meet the high pass of $100 per barrel in the international market.
However, energy expert Sani Yabagi said there was no doubt that the oil-producing Contris benefited from higher oil prices, adding: “But Nigeria is struggling with two things: corruption and the importation of refined products.” They are not reaping the benefits.”
Oga Yabagi explained that Nigeria produces a large amount of crude oil and losses are being incurred due to crude oil theft. “So Nigeria thinks they’re going to work in oil, but most of them are controlling people in high positions,” Tork said.
“The oil and gas sector experiences high levels of oil theft and high levels of corruption.
According to a report by the Nigerian National Petroleum Corporation (NNPC) for September 2024, “A total of 188 incidents of oil theft occurred in various locations across the Niger Delta within one week from August 24 to 30, 2024. has occurred.”
“Because we are not going to refine our own crude oil, rather we are exporting crude oil and importing refined products. Because of this, we still continue to spend on importing finished products.”
“We have only recently started refining crude oil for Nigeria with the establishment of the Dangote refinery, but as this is a private operation, the impact on Nigeria’s revenue is very small.”
Will selling crude oil in Naira help?
Origin of Wia’s photo, Getty Images
We call the photo disphoto, but the Nigerian side says they will not start selling crude oil to the Dangote refinery in naira instead of dollars.
Last week, the Federal Government announced that it would sell crude oil to local refineries in Dangote and Oda in naira and no longer in dollars.
However, Yabagi believes the deal will do little to reduce exchange rate pressure on the naira, “but it will not reduce the price of gasoline and petroleum products.”
“Unless Nigeria sells crude oil to the Dangote refinery at some discount to the price for the international market, otherwise we will not sell much,” Yabagi said.
“Remember, Dangote has said that it cannot yet supply its entire crude oil inventory and cannot buy crude oil from Oda Contris Bikos NNPC.”
Yabagi Toku said if the crisis in the Middle East continues, energy costs around the world will rise and Nigeria’s economy will suffer even more, rather than benefiting from “corruption and fuel imports.”
E also reiterated what the oil sector has said to BBC Pidgin on Nigeria’s oil problem, saying, “Let’s stop saying, ‘Dangote refinery can solve Nigeria’s petrol shortage problem, but it can’t make it cheaper.’
On the possibility that rising oil prices could have a negative impact on Nigeria’s economy, Oga Yabagi said the impact would be “very minimal”.
