The causes and effects of fall in oil prices on Nigeria economy.

The causes and effects of fall in oil prices on Nigeria economy.By: Tofunmi Oj

History of oil explorations in Nigeria.Oil was discovered in Nigeria in 1956 at Oloibiri in the Niger Delta after half a century of exploration. The discovery was made by Shell-BP, at the time the sole concessionaire. After 1960, exploration rights in onshore and offshore areas adjoining the Niger Delta were extended to other foreign companies.

List of oil producing countries (OPEC and Non-OPEC members)OPEC: -Baghdad, Iraq, Iran, Qatar, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, and Angola.Non OPEC: -Yemen, Vietnam, United States, United Kingdom, Syria, Sudan and South Sudan, Russia, Oman, Norway, Mexico, Malaysia, Kazakhstan, Indonesia, India, Gabon, Egypt, Denmark, Columbia and many more.

Causes of Fluctuations in oil prices.Factors of Production.Natural DisastersBad Climate etc.

Effects of fall in oil prices on Nigerian economy.

Bearing in mind that Nigeria is an import dependent economy, this development is worrisome. Consequently, we believe that a combination of negative performance in all these macro indicators will culminate in rather unfavorable conditions for an emerging economy like Nigeria. There will be many riots and rebellions.

Solutions/Recommendations to prevent further fall in oil prices.Time to prone political appointees.Look inwards, reduce cost of governance.Diversification of economy, more taxes long overdue.

Sources:Slide 2: http://www.nnpcgroup.com/NNPCBusiness/Businessinformation/OilGasinNigeria/IndustryHistory.aspxSlide 3: http://www.opec.org/opec_web/en/about_us/25.htm & http://peakoilbarrel.com/non-opec-charts/Slide 4: https://www.pearlmutual.com/publications.php?pa0=Effect%20of%20Fallen%20Oil%20Prices%20on%20the%20Nigerian%20EconomySlide 5: http://leadership.ng/business/391418/oil-price-fall-experts-proffer-survival-strategies-economy

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