The recent vandalism of pipelines in the oil rich Delta state has left Nigeria counting its loses. So far two newly re-rehabilitated refineries have been forced to shut down forcing electricity generation to scale down following the incidents.
Vandals recently blew up pipelines distributing crude to the refineries and that has forced their shutdown. Observers of the energy sector here think the country will soon start feeling the impact of the shutdown.
The sharp decline in crude oil prices since the third quarter of 2014 has pushed Nigeria’s economy on the edge .
Oil accounts for close to 90% of exports and roughly 75% of the country’s consolidated budgetary revenues but crude is oil now selling at about $33.
That is the lowest in 17 years and it has drastically diminished the governments disposal income.
Nigerians consume an average 30milliom litres daily and the country’s 4 refineries were churning about 6 million litres.
