AFP, Lagos :
First it was falling oil prices that plagued Nigeria, then came inflation, power shortages, and a humanitarian crisis in the north.
“Suddenly, we’re a poor country,” Nigerian President Muhammadu Buhari said on Thursday in Abuja, the nation’s capital.
“Before we came to office, petroleum sold for about $100 per barrel. Then it crashed to $37, and now oscillates between $40 and $45 per barrel.”
By the end of the month it’s likely Nigeria will officially enter a recession.
Adding insult to injury, this week the International Monetary Fund said that South Africa overtook Nigeria as Africa’s biggest economy in dollar terms-a result of the anaemic naira.
“Both countries are experiencing difficulties, but Nigeria is taking a more slower pace to recover. I don’t think Nigeria can regain its position anytime soon,” Manji Cheto, Sub-Saharan Africa analyst at London-based Teneo Holdings, told AFP.
That’s because Nigeria’s problems, a result of decades of mismanagement, have no easy fix. Just a few months ago, Nigeria was the number one oil exporter on the continent.
Not anymore. According to figures released Friday by OPEC, Nigeria is now producing just 1.5 million barrels per day, compared with Angola which is pumping out 1.7 million.
Militant attacks on oil infrastructure in the increasingly volatile southern swamplands are to blame.
The Niger Delta Avengers, a new armed group fighting for political autonomy and a bigger cut of oil revenues, have been bombing pipelines since the beginning of 2016.
They have vowed not to stop until their demands are met.
First it was falling oil prices that plagued Nigeria, then came inflation, power shortages, and a humanitarian crisis in the north.
“Suddenly, we’re a poor country,” Nigerian President Muhammadu Buhari said on Thursday in Abuja, the nation’s capital.
“Before we came to office, petroleum sold for about $100 per barrel. Then it crashed to $37, and now oscillates between $40 and $45 per barrel.”
By the end of the month it’s likely Nigeria will officially enter a recession.
Adding insult to injury, this week the International Monetary Fund said that South Africa overtook Nigeria as Africa’s biggest economy in dollar terms-a result of the anaemic naira.
“Both countries are experiencing difficulties, but Nigeria is taking a more slower pace to recover. I don’t think Nigeria can regain its position anytime soon,” Manji Cheto, Sub-Saharan Africa analyst at London-based Teneo Holdings, told AFP.
That’s because Nigeria’s problems, a result of decades of mismanagement, have no easy fix. Just a few months ago, Nigeria was the number one oil exporter on the continent.
Not anymore. According to figures released Friday by OPEC, Nigeria is now producing just 1.5 million barrels per day, compared with Angola which is pumping out 1.7 million.
Militant attacks on oil infrastructure in the increasingly volatile southern swamplands are to blame.
The Niger Delta Avengers, a new armed group fighting for political autonomy and a bigger cut of oil revenues, have been bombing pipelines since the beginning of 2016.
They have vowed not to stop until their demands are met.
