Nigeria Economy shakes as Oil Price decrease by 22%

Nigeria Economy shakes as Oil Price decrease by 22% ,since the outbreak of the deadly

disease, CoronaVirus, which originated from China, a  lot of calamities has been

happening all over the world.

Nevertheless, critical situations still continue. The world occurrence at this time will damn

many country’s economies especially oil- dependent countries like Nigeria.

At the breaking of the day today, a barrel of oil price has been dropped by 22%

, now 35 dollars per barrel. This is a great situation for Nigeria.

Brent crude oil prices fall more than 20 per cent, to under $36 per barrel.

The losses follow a 10 per cent drop in U.S. oil prices Friday, amid decreased demand as

the global coronavirus outbreak spreads.

Demand for energy is falling as people cut back on travel around the world.

The worry is  that the new coronavirus will slow economies sharply, meaning even less

demand.

The virus usually leaves people with only mild to moderate symptoms,

but because it’s  new, experts can’t say for sure how far it will ultimately spread

and how much damage it  will do, both to health and to the economy.

The number of cases has reached 109,000 globally, and Italy on recently

tried to  quarantine a region holding more than a quarter of its population in hopes of

corralling it.

Saudi Arabia announced massive discounts to its official selling prices for April,

and the  nation is reportedly preparing to increase its production

above the 10 million barrel per day  mark, according to a Reuters report recently.

The kingdom currently pumps 9.7 million barrels per day but has the capacity to ramp up

to 12.5 million barrels per day.

Can the Buhari government handle this situation well? Take to notice that they just

borrowed a huge amount of money from a foreign nation.

This could be another period of  recession if the situation isn’t handled with all seriousness

and expertise.