For years, Nigerians have cheerfully accepted the false impression that oil wealth will last forever. When nations cultivate lands, working their brains to stretch revenue stream, and build things that would stand the test of time, Nigeria was lost in the illusion that revenue from oil is enough and have no reason whatsoever to explore other potentials that nature bestowed on us.

Cheap money, as many people often describe oil revenue, is a reality Nigeria leadership for over 53 years of exploration, think would never change. Look at the reckless abandonment of the agricultural sector, the eroded value of education, and the sheer negligence of other valuable natural resources. This will show you how the fate of the country is placed on oil derivation.

And when anyone least expected, coronavirus pandemic struck the world and almost everything changed from what they used to be. From social lifestyles to the economy, things have changed drastically and presented a new reality for everyone. Though we anticipated a change, it came quicker than expected.

In late April 2020, the world was thrown into confusion after West Texas Intermediate (WTI), the benchmark for US crude oil, shed a substantial amount of price value and turned negative. By Tuesday, the pressure stretched to Brent Crude, whose futures for June delivery lost 15% to trade near $16 a barrel, the lowest in almost 21 years.

And that is a piece of unpleasant news for Nigeria, who will see a sharp drop in oil receipts due to the unfolding development. That is the new reality and Nigerians should not let them be cut unaware. Let no one deceive you, the party is over and the option left for everyone is to adapt to the new reality.

The signs have been there for a while now, but those in charge of governance failed to pay serious attention and now that it is here, we may pay a huge price for their inefficiency and negligence. Even though the government had overtime assure Nigerians of the move to limit dependence on oil, the implementation remains largely unseen. As of today, a larger share of government revenue still comes from oil sale and that makes any drop in the price of the commodity a big blow on the country.

You could almost sense that things look awry when the federal government reviewed the 2020 budget downward as revenue prospects dropped. Even at that, there are likelihoods that budget deficit will go up as much as N4 trillion, much higher than the N2.2 trillion projection in the fiscal document signed by President Muhammadu Buhari late last year.

Before our very eyes, we’re seeing the supposed black gold that Nigeria has counted on for years shedding value and there is hardly any alternative to cushion the effect of the shortfall. The disturbing thing is that we may have left it too late and mitigating the impact of the new reality may be tougher than the government would want us to believe.

Already, coronavirus has done immeasurable damages to economies across the globe and Nigeria isn’t an exception. As a consequence, many companies would have a tough time returning to normalcy when the pandemic restrictions are eventually lifted and may result in the sack of many working in the private sector.

Though the government may not be able to follow that route due to fear of public backlash, however, some may struggle to meet up with salary obligations. And when that happens, it will further strain the distressed economy as that would enormously reduce the purchasing power of citizens and send many citizens into acute poverty.

Before the virus struck and forced a drop in demand for oil, Nigeria’s economy is struggling to catch-up and the government was on the verge of securing over $22 billion external loans to fund some selected projects. That decision sparked protests from some Nigerians who feared the borrowing spree posed a danger to the future of a country that is already owing in excess of $87 billion.

Now that the whole world is struggling with the effect of coronavirus, there is a serious doubt that any lender would be prepared to give out such a huge amount and the fall in oil price means the country would have to cope with the little that comes to its treasury. That scenario, experts warn could have devastating impacts on people from low-income households.

Written by Oke Umurhohwo, a Political Analyst and Strategist. He tweets via @OkeStalyf and can be reached via oke.umu@gmail.com

https://leaders.ng/oil-price-nigeria-and-the-new-reality%ef%bb%bf-by-okestalyf/

I dedicte this FTC to @slawormi Dammmmmnnn Nigga

You Are Real Niccur...

Happy belated BD Jigga ♥️



Let's skip that worries n share a blunt

Slawormir:
Damnnnnn niggarrr
Isoright

If all the past and present thieves would be made to payback atleast 10% to the national treasury, it will go a long way. Good as our eyes dey clear.

it is what Nigeria needs to start thinking straight.

An end has come to easy money which they couldn't use to develop the nation.

Damnnnnn niggarrr
Isoright
As a real niggarrr am of the Same opinion or rather i concur with fact that the signs have been there for a while now, but those in charge of governance failed to pay serious attention and now we may pay a huge price for their inefficiency and negligence
But what about we the masses?
We nor dey find solutions on how to diversify the economy
All we Sabi do na tribal fight for internet and online
Igbo this! Hausa this! Yoruba this!

Then the Niger Delta people na to dey shout "our oil "up and down
The oil now nor go fit sustain us again
As at today most federal Tertiary institutions never receive April salary

fore Thinker:
I dedicte this FTC to @slawormi Dammmmmnnn Nigga

You Are Real Niccur...

Happy belated BD Jigga ♥️



Let's skip that worries n share a blunt

I see you
My niggarrr from another mother
Together we will be pulling the trigger and smoking enough weed. But we must be careful the amount of weed we smoke because no matter the amount of weed we smoke we can never be the most high only jah( God) is the most high

Even when the Oil had high value. The average Nigerians did not benefited from it...

With the kind of greedy leaders we have, I doubt if they will learn and re-strategize. Rather they will be looking for means to do their last looting before they leave power...

Visionless Leaders.... #Spits

I want this to be permanent so bad

We are in deep shit

Over to U

The signs have been there for a while now, but those in charge of governance failed to pay serious attention and now that it is here, we may pay a huge price for their inefficiency and negligence. Even though the government had overtime assure Nigerians of the move to limit dependence on oil, the implementation remains largely unseen. As of today, a larger share of government revenue still comes from oil sale and that makes any drop in the price of the commodity a big blow on the country.

We all folded our arms and watch the wrong people rig themselves in the right places

People that have no idea of their job description

At he end of the day, this will be the end result:

We will continue to write and talk about the mistakes our leaders made and are making

Next election, we will will watch the wrong person rig himself in and we will continue to write and talk about it

The current regime has promised to diversity, did he NO!!! Oke Umurhohwo has written and we will continue to talk about it

Governments make costly mistakes, we turn it to joke and we will continue to talk about it

They collect loans, mortgages this country, we will continue to talk and write.

The people bold enough to talk about it, we don't support, we just talk about it. Where's Nnamdi Kanu, Oby Ezekwesili and Sowore

We are too much of a coward to consistently confront this government.

So as usual let's continue to talk about it

Slawormir:
Damnnnnn niggarrr

Diversification is such a stranger in the creation of Nigerian policies; both domestic and foreign.

[img]https://media1./images/22d9689453caf1cd8e4da60495038966/tenor.gif[/img]

Wealth is no longer in the earth but in the mind
of men.

reality is dawning on the country, alaye it's time to double your hustle not the audio self sufficiency in rice cultivation and audio customs& tax revenue

This oil price crash is good. I'm sure no government will seek external loan to fund her own budget. So when there's no revenue to fund a huge budget, what happens? The budget will be slashed too. Government spendings will reduce. Senators will be forced to reality. They will not ask for new cars every year. .

They should start embracing Agriculture with utmost attention...

Reality has not set in tho......

This is Naija......
Let's see wetin go happen...

A Nairaland mod is in love with this writer and always pushing his piece to front page.

Time to diversify, diversify

Agriculture should kindly forgive Nigeria and come to our aid

May God help us

Well written.

We are screwed... and it's mostly the fault of bad leaders.

Maybe Nigeria losing her oil and going stark n.aked broke will make political positions less attractive for the kind of greedy beasts lining the corridors of power today.

Maybe then we will get it right with someone who really cares.

It pains my heart everyday that a Nation as big as Nigeria with all the amazing natural resources still languishes in abject poverty and wretchedness.

What a nigeria

Nigeria has been dangling on a thread for many years, and we are too blinded by our short thinking to see that.

We need many degrees of intervention, we need to restructure. We need to go our separate ways, and we need to THINK... We can't move on if we don't.