• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 5 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

IMF Slashes Nigeria GDP Outlook On Coronavirus Impact

The International Monetary Fund cut Nigeria’s economic growth outlook, citing the effect that the Chinese coronavirus outbreak has had on global oil demand.

The revision follows a visit to the country by IMF officials, who said in a statement that Nigeria’s economic recovery remains shaky and challenges abound.

“External vulnerabilities are increasing, reflecting a higher current account deficit and declining reserves that remain highly vulnerable to capital flow reversals,” the IMF’s Mission Chief for Nigeria, Amine Mati, said in the statement.

“Under current policies, the outlook is challenging. The mission’s growth forecast for 2020 was revised down to 2 percent to reflect the impact of lower international oil prices. Inflation is expected to pick up, while deteriorating terms of trade and capital outflows will weaken the country’s external position.”

Nigeria is currently producing less than 1.8 million bpd according to OPEC’s latest monthly report. This is a lot less than it wants to produce, but the country is bound by its commitment to the OPEC+ club that is keeping production capped to stimulate prices, however unsuccessfully this has been going lately.

At the same time, Nigeria is trying to boost its oil income in other ways. Last year, the country slapped Big Oil majors active in its oil industry with a lawsuit demanding $62 billion in back taxes payable under a legal stipulation from the early 1990s concerning the review of royalty rates based on international prices.

Meanwhile, several oil majors are cutting their presence in Nigeria. Chevron, Total, and Exxon are all looking for buyers for some of their Nigerian assets. This does not bode well for Nigeria’s oil industry unless it completes the sector reform that has been dragging its feet for two decades now. Then it could turn its attention to non-oil revenues, too.

“Non-oil revenue mobilization—including through tax policy and administration improvements—remains urgent to ensure financing constraints are contained and the interest payments to revenue ratio sustainable,” the IMF’s missions said in its statement.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News