The hard times are indeed here to stay for Nigeria as her major oil importer China has suddenly changed her taste for light crude to heavy crude oil. The consequence of this is that the country will now have to look elsewhere for a probable suitor to buy her light sweet crude as the country does not export finished products.
Invariably, Nigeria has become one of the biggest casualties of the advent in technology which has made it relatively cheap for the United States to continue the exploration of shale oil. Before now the united states is the largest importer of Nigeria’s light crude, until she decided to explore the production of shale oil which is relatively cost effective
This led to a drop in demand for the country’s oil from 50% to paltry 3% according to EIA reports.
The reality at present is that there will certainly be lesser revenues available for the government and the resultant effects will include increased borrowing and austerity measure for our oil heavy dependent economy. If the signs are anything to go-by, this government faces a herculean task at meeting the needs of the people.
Speculation are rift that President Muhammad Buhari intends holding the office of minister of petroleum, if this is true, then the die is cast for Nigeria as the demands of the office of the president would hardly give the bearer time to combine the turbulence that is associated with the petroleum ministry.
To avert total collapse of the economy, the managers must as a matter of fact find quick buyers of the nations oil to keep the wheel of government running and the dividends of democracy delivered.
