Global oil price tumble has dealt a heavy blow to Nigeria, Mele Kyari, head of the Nigerian National Petroleum Corporation said on Wednesday.
He urged the citizens to prepare for “a more tough time in a few months following the crash in the price of crude oil due to the outbreak of the novel coronavirus.”
As oil is the country’s economic mainstay, the price dive will take its toll on Nigeria, Kyari said at a conference on the current oil market.
“The coronavirus has brought several issues, especially in the financial sector, as there is a decline in consumption,” Kyari added.
About 12 Liquefied Petroleum Gas (LPG) cargos got stranded globally, as they had no hub due to the abrupt collapse in demand, he said.
The current situation has also affected the Nigerian crude, with 50 oil cargoes stranded so far, he added, saying that there is a global demand of 100 million barrels per day.
“We can take oil production to three million barrels if we are determined, but the problem still remains that we have a huge challenge which is the capacity to finance oil development in Nigeria,” he added.
