
Vice President Yemi Osinbajo has said lower oil prices also mean there is some advantage for the Nigerian economy.
Vice President Yemi Osinbajo has said the plunge in oil prices has some advantages for Nigeria because the country will no longer have to subsidise fuel.
Speaking at a panel discussion at the World Economic Forum in Davos, Switzerland, on Thursday, January 21, Osinbajo noted that the decline in oil price “means that we are not paying any subsidies, which frees up something in the order of about $5bn (about N985bn), according to Bloomberg.
Reuters reported that US oil prices crashed below $27 dollars a barrel on Wednesday, January 19 for the first time since 2003, caught in a broad slump across world financial markets with traders also worried that the crude supply glut could last longer.
The crash in oil prices keeps getting worse, heightening concerns about the health of the world economy, particularly those like Nigeria whose budget are heavily depended on oil price.
But Osinbajo has explained that “with adequate governance around budget management and around expenditure management, we can do quite a bit. If we are able to do those things, we might be able to come away with under $30 a barrel oil”.
“Low oil prices have freed up $15 Billion in subsidy costs for Nigeria. This is a plus for us, “ he added.
On the Boko Haram insurgency, he said the “real existential threat of Boko Haram no longer exists but there are pockets of suicide bombings”.
Meanwhile,Senator Ben Bruce has lamented over Nigeria’s continuoud decline in economic hinting of the trouble that might befall the country if something is not done urgently. The socio-media savvy senator who is representing Bayelsa East constituency in the National Assembly, took to twitter and highlighted very pressing issues affecting the Nigerian economy. He raised questions regarding the Nigeria oil industry and the sustainability of the Nigerian people.
Source: Naij