For centuries the economy of Nigeria has firmly fastened to its weighty anchor. However recent analytical data could suggest that the friction is gradually easing off and the economy sliding into megaplumes.
The 2020 National budget was formed with a benchmark of oil at $57. This means the calculation of the budget worked with an all time low of $57 dollar for crude oil. Simply put, as some may say; "The worst case scenario".
As at December 18th 2020 when the National budget of 2020 was approved, crude oil traded at $61. However with the outbreak of the Covid19 and the resultant economic decline, March 8 2020 saw oil prices fall to $30 leaving us with a deficit of $27 and a shortage of NGN10 800 per barrel.
The trend it made on the media and nationwide gave the impression that we were in the worst that could ever be, not knowing we only just started. Few days later, the steady and gradual bear market continued. And on 20 April oil futures plunged 321% to record an all time low of negative $37.
The substantiality of this, have not been fully grasped until perhaps after the pandemic. This is expected to take a big toll on the Nation's economy given the historical analytic data of the income of oil and how it holds together the value of our Naira.
2017 oil was 70% of government revenue and just last year, 2019 it was 65% of government revenue and made 88% of forex earnings.
Oil have been the structure on which our economy was built, the agriculture sector have hardly matched quarter of the turn up from oil sector and with 84 million barrels of Nigeria crude oil still sitting at sea, coupled with the price fall, it's left to see how this current administration marked with failures stir the already collapsing economy from brink of total collapse.