According to leading online oil and gas publication, Platts, Nigeria would require about $123 billion to augment its budget for 2015 due to the sharp plunge in crude oil price.
Platts stated: ‘‘With the price of Brent crude at five and a half year lows, Africa’s top oil producers, Nigeria, Angola, Libya and Algeria face growing fiscal challenges because more than 70 per cent of these countries’ revenue stems from oil production.’’
According to Platts, the price drop will hit many Africa’s economies harder than the Ebola epidemic and will likely have more implications for nations conducting elections, like Nigeria.
In the meantime, the Organization of Petroleum Exporting Countries has revised non-OPEC supply downward in all four quarters of 2015, but has made the bigger revisions in the second half of the year, with the third- and fourth-quarter forecasts revised downward by 510,000 barrels per day and 670,000 per day respectively.
The cartel has therefore made adjustments to its projections of the call on crude produced by its 12 members back above 30 million barrels in the second half of 2015, to 30.1 million barrels per day in the third quarter and 30.64 million in the fourth, due to a result of the quarterly revisions to the forecasts for non-OPEC supply.