UNDERSTANDING THE IMPACT OF CORONAVIRUS PANDEMIC AND THE CURRENT GLOBAL OIL PRICE WAR ON NIGERIA’S PETROLEUM SECTOR

Abstract

The study explores and assesses the impact of the raging coronavirus pandemic disease and also, the present global oil price war on the petroleum sector of the nation’s economy. The study acknowledges that earlier in 2020, that oil prices had fallen to almost frightening ebb per barrel above about the lowest ever recorded for quite years. Back then, the study further noted that the combination of shale oil production from the US and the predictions about sluggish global demand growth perhaps seemed to be responsible then. However, today, the study asserts that the coronavirus pandemic disease, which has slashed Chinese oil demand to a very challenging global threat, coupled with some renegades in the Organisation for Petroleum Exporting Countries (OPEC) who have decided to over shoot the approved quota, in the hope of compensating for the rapid decline in prices, appear to have aggravated the scenario. The outcome of these challenges seems to pose a threat to Nigeria in particular for being a mono economy, for her sole reliance on oil. The methodology adopted for the study was both descriptive and expository research methods. The findings of the study suggest that the current crash in oil prices and the rising debt profile of Nigeria seem to put a question mark on the future of the country, amongst others. The study therefore recommends, amongst others, an urgent diversification of the nation’s economy to pre-empt future volatility in petroleum prices.