{"id":19858,"date":"2020-06-09T13:27:34","date_gmt":"2020-06-09T13:27:34","guid":{"rendered":"http:\/\/watchdogplusmedia.com\/?p=19858"},"modified":"2020-06-09T13:27:40","modified_gmt":"2020-06-09T13:27:40","slug":"future-of-oil-in-nigerias-economy-falling-faster-than-predicted-kachikwu","status":"publish","type":"post","link":"https:\/\/watchdogplusmedia.com\/?p=19858","title":{"rendered":"Future of oil in Nigeria\u2019s economy falling faster than predicted \u2014Kachikwu"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/i3.wp.com\/www.ripplesnigeria.com\/wp-content\/uploads\/2019\/01\/Kachikwu-Ibe.jpg\" alt=\"REFINERIES: Nigeria woos Saudi Arabia for investment\"\/><\/figure>\n\n\n\n<p>Nigeria\u2019s immediate past Minister of State for Petroleum Resources, Ibe Kachikwu, has said that crude oil\u2019s contribution to the nation\u2019s economy will fall rapidly.<\/p>\n\n\n\n<p>Currently, oil makes up 10 per cent of the country\u2019s Gross Domestic Product even though it provides as much as&nbsp;<a href=\"https:\/\/eiti.org\/es\/implementing_country\/32#:~:text=Revenue%20collection,USD%2017.055billion%20in%202016.\">65 per cent of government\u2019s revenue<\/a>&nbsp;and nearly&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-05-25\/nigeria-economic-growth-slows-to-1-87-y-y-in-first-quarter#:~:text=Oil%20contributes%20less%20than%2010,of%20Nigeria's%20foreign%2Dexchange%20earnings.\">90 per cent of foreign exchange earnings.<\/a><\/p>\n\n\n\n<p>\u201cThe future of oil may be coming to an end faster than the twenty-year historical predictions. This does not mean that oil will not continue to be relevant,\u201d Kachikwu said on Monday in a document titled, \u2018The future of Africa without oil\u2019.<\/p>\n\n\n\n<p>According to him, oil will continue to be an essential component of the GDP and create funding for development in countries like Nigeria and Angola, which have 40 to 50 years\u2019 proven reserves.<\/p>\n\n\n\n<p>\u201cBut its contribution to those two key economic indices will continue to shrink\u2026and fast too. So, common sense compels that serious focus on retooling the dependency basis of our African economy must begin,\u201d Mr Kachikwu said.<\/p>\n\n\n\n<p>The International Energy Agency released its 2020 investment forecast earlier in June, revealing that investments in oil were falling.<\/p>\n\n\n\n<p>He observed that two to four per cent growth in new investments was projected for the industry \u2013 both crude and refined \u2013 before COVID-19 set in.<\/p>\n\n\n\n<p>\u201cBut with COVID-19, the lockdowns, the economic meltdowns, the crumbling of the travel and hospitality industry, and the crash of oil prices to all-time lows, the investment forecast turned out much worse.<\/p>\n\n\n\n<p>\u201cIt is projected that new investment in the oil sector will be down by a frightening 20 per cent. This means that a lot of projected oil field developments, exploration and production, and even investments in refining will suffer.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nigeria\u2019s immediate past Minister of State for Petroleum Resources, Ibe Kachikwu, has said that crude oil\u2019s contribution to the nation\u2019s economy will fall rapidly. Currently, oil makes up 10 per cent of the country\u2019s Gross Domestic Product even though it provides as much as&nbsp;65 per cent of government\u2019s revenue&nbsp;and nearly&nbsp;90 per cent of foreign exchange [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_mi_skip_tracking":false},"categories":[21],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Future of oil in Nigeria\u2019s economy falling faster than predicted \u2014Kachikwu &raquo; WatchDog Plus Media<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/watchdogplusmedia.com\/?p=19858\" \/>\n<meta name=\"author\" content=\"Odofin\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/watchdogplusmedia.com\/?p=19858#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/watchdogplusmedia.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Economy\",\"item\":\"https:\/\/watchdogplusmedia.com\/?cat=21\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Future of oil in Nigeria\u2019s economy falling faster than predicted \u2014Kachikwu\"}]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Future of oil in Nigeria\u2019s economy falling faster than predicted \u2014Kachikwu &raquo; WatchDog Plus Media","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/watchdogplusmedia.com\/?p=19858","author":"Odofin","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"BreadcrumbList","@id":"https:\/\/watchdogplusmedia.com\/?p=19858#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/watchdogplusmedia.com\/"},{"@type":"ListItem","position":2,"name":"Economy","item":"https:\/\/watchdogplusmedia.com\/?cat=21"},{"@type":"ListItem","position":3,"name":"Future of oil in Nigeria\u2019s economy falling faster than predicted \u2014Kachikwu"}]}]}},"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"Odofin","author_link":"https:\/\/watchdogplusmedia.com\/?author=2"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/watchdogplusmedia.com\/?cat=21\" rel=\"category\">Economy<\/a>","rttpg_excerpt":"Nigeria\u2019s immediate past Minister of State for Petroleum Resources, Ibe Kachikwu, has said that crude oil\u2019s contribution to the nation\u2019s economy will fall rapidly. Currently, oil makes up 10 per cent of the country\u2019s Gross Domestic Product even though it provides as much as&nbsp;65 per cent of government\u2019s revenue&nbsp;and nearly&nbsp;90 per cent of foreign exchange&hellip;","_links":{"self":[{"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/19858"}],"collection":[{"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19858"}],"version-history":[{"count":-4,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/19858\/revisions"}],"wp:attachment":[{"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}