Economy: New borrowing underway as oil production, reserves dwindle | The Guardian Nigeria News

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• 40b reserves, 4m bpd remain a mirage 10 years after
• 2022 budget revenue projection faces fresh hurdles amid divestment
• Govt owes oil company $1.4b in cash call
• Petrol subsidy: FG to continue bridging cost payment despite PIB

Widening deficits, poor crude oil production, rising subsidy payments and lingering foreign exchange challenge appear to be compounding Nigeria’s revenue problems, making borrowing the last resort for the Federal Government in financing the N16.39 trillion 2022 budget.

Unable to take advantage of higher oil prices, the call by some major oil consuming nations to release their strategic reserves to check high prices is expected to further reduce projected income from an oil rally, despite low production.

Indeed, oil traded below $80 after the calls to release reserves.

Currently, crisis-rocked Libya has ousted Nigeria as Africa’s leader in terms of crude oil production and reserves. Fresh indications emerge that Nigeria may never increase its…



Source: Guardian Newspaper

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