Oil Production Cut Hit Nigeria Federal Government Revenue says Osinbajo

Oil Production Cut Hit Nigeria Federal Government Revenue says Osinbajo

oil production cut

In Nigeria, it is custom that every year-end, there is always a hike in prices of crude oil-related products. Now the oil production cut has hit the federal government revenue, what is the fate of Nigeria and her citizens.

The vice president of Nigeria Professor Yemi Osibanjo has just made a statement on the adverse effect the oil production cut will have on the Nigerian federal government revenue, let alone the country’s budget.

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In a statement on Tuesday, the vice president Professor Yemi Osibanjo asserted that “the oil production cut deal by the Organisation of Petroleum Exporting Countries and its allies has resulted in lower revenue generation for the Federal Government”

The distinguished professor went further to state, saying “the Ministry of Petroleum Resources had a mandate to drastically reduce the unit cost of crude oil production in the country to increase government revenue”.

Osibanjo did not leave out the effects such a turn will have on our economy as he further claimed that “It is imperative that in our current era of scarce resources, all should seek at a unit cost of production in single digit”.

These statements were made during the international conference with the Nigerian Association of petroleum explorers. The record has it that this conference comes up annually, and this was the 38th time this meeting was being held.

During this conference, the minister of state for petroleum and oil resources “Timipre Sylva” stood in for the vice president professor Osibanjo.

Timipre sylva while giving his statement blamed the COVID-19 pandemic as the reason for the current recession in oil fare.

In as much as these claims happen to be true, but what about the times when there was no cut in the oil production. Many Nigerians have in their stories that indeed it has always been the same tales year after year.

Timpre Sylva went ahead to tell the public that “The low price coupled with OPEC crude oil production curtailment has largely resulted in lower revenue generation for the government”.

Yemi Osibanjo indicated conviction and raised high the hopes of Nigerians by saying that the country would accomplish the objective of seeking out more natural deposits of crude oil and hydrocarbon, irrespective of the cut down in manufacturing.

Meanwhile, this year alone the petroleum price has kept on fluctuating. What could solve the problems? One may ask

These stories have been repeated year to year by leaders in different administrations.

With this recent oil production cut, Nigerians can only hope petroleum pump prices and other crude oil-related products do not skyrocket, as this has been the practice in the previous years.

There is clamor among the Nigerian citizens to the government, saying that these repeated yearly problems should be fixed once and for all.

From the going of things, since the COVID-19 pandemic is still ravaging in most countries, the oil production cut is here to stay as the demand for crude oil and related products remains low.

Looking for new ways of survival, therefore, remains that subject which Nigeria and its citizens must deal with.



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