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Time for Nigeria to forget crude oil

Nigeria’s economy is in a tight corner, as Brent crude’s value has dropped by half since the worst pandemic in recent history started early this year. 



Time for Nigeria to forget crude oil

Nigeria, Africa’s largest economy, is so over-dependent on crude oil that it makes up about 90% of its export earnings, and more than 60% of Nigeria’s Federal Government revenue. So when low prices, caused by the COVID-19 pandemic started, Nigeria’s economic growth paused.

The country has not been able to use its crude oil wealth to improve the living standards of its people, with a growing population of over 200 million.


The COVID-19 pandemic put Nigeria’s economy in a tight corner, as Brent crude’s value has dropped by half since the worst pandemic in recent history started early this year.

According to a report by a leading American consulting firm, McKinsey & Company, “The subsequent economic fallout for Nigerians will be severe. GDP forecasts are suggesting that if oil prices stay low, GDP growth will be -3.4% in 2020.

Worryingly, this is the prediction if the outbreak is effectively contained in the country. By contrast, if it is not contained effectively, then Nigeria could see GDP growth in 2020 fall to -8.8%, driven by declining consumer spending.”

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(READ MORE: Bonny light crude oil crashes as Nigeria runs into deeper revenue crisis)

Time for Nigeria to forget crude oil

With the growing odds against Nigeria’s monotonous economy, Omeiza Makoju, ACCA, an energy expert in a leading oil upstream firm, told Nairametrics that the problems Nigeria faces can be attributed to the fact it focuses on just oil. He said:

Following the COVID-19 outbreak and low oil prices, the revised 2020 budget reflects an increased deficit (now approx. 50% of total budget) which will most likely be funded with a combination of foreign and domestic debt.  

“The revised budget also shows that the “Resource Curse” stigma credited to our nation is getting bolder and the diversification of our economy requires critical attention now. With our country’s endowment with enviable natural resources and several attempts by the Federal Governments (FG) to diversify the economy, it still is to be seen how effective the attempts have been.  


“The over-dependence on the oil sector as the major source of revenue has led to inadequate attention being given to the non-oil sectors. This is partly the cause of the challenges we have to contend with in funding the 2020 budget.” 


(READ MORE:COVID-19: Nigeria cuts revenue targets in anticipation of economic shock)

Time for Nigeria to forget crude oil

Makoju,  spoke in detail on how Nigeria, a country with 87 million people living on less than $1.90 a day, could diversify its economy.  He continued by saying:

“The difficulties we currently face have also shown that an industrial revolution may be crucial for us to achieve the sustainable economic growth needed and we are ripe with the preconditions required. The preconditions include: large population (consumption/workforce), vast arable lands, Ajaokuta Steel and high teledensity, to mention a few.  

“The revolution will be most effective when the FG harnesses all these preconditions mentioned which will invariably bring about much-needed diversification and significantly improve our economic output in agriculture, telecommunication, ICT, manufacturing capacity, etc. For the FG’s diversification strategy to be complete, significant investments will be required in associated infrastructure (power, security, and transport networks).  


“Without casting a spell, it’s obvious that what was once tagged black gold (crude oil) cannot stand the test of time as demand for crude will never be the same, with renewables and electric automobiles springing up.” 

(READ MORE:FG records $9 million transactions from SheTrades since 2016)

Temitope Busari, CFA, in a phone chat interview with Nairametrics, said that it was time for Nigeria as a country to diversify.

“One outcome of the diversification of the Nigerian economy, and perhaps the most critical one at this time, is the potential to diversify our foreign exchange earnings as a sovereign state. It will reduce overdependence on crude oil, maximize opportunities in erstwhile neglected sectors and project the country as the destination for top-class value creation in other areas outside being an oil-producing state.” 

She spoke about Nigeria investing more on intellectual property and encouraging Nigeria’s talent in the diaspora by saying:

I believe the way to go about it is to promote free markets and support large scale exports from the Agricultural, Mining, and Technology space. Additionally, we should focus on the raw diamond that is “intellectual services.” 

“We have produced some of the most brilliant minds in the world evidenced by the groundbreaking successes recorded by Nigerians  in diaspora  (Medical professionals, Software engineers, resilient small business owners to mention a few), and we must begin to drive policies to retain that talent in-country and make the world pay premium dollar for it.  

“A good place to start would be to fix the broken education sector, to improve the capacity to churn out more exceptional talents.” 

(READ MORE:The CBN data that can reveal whether we are already in a recession)

Time for Nigeria to forget crude oil

Ugonna Thelma Ohiri-Anyanwu CFA, in an email sent to Nairametrics, explained, the need for fiscal reforms and tax breaks in supporting Nigeria’s macro fundamentals, she wrote;

“As businesses, individuals and the country come to terms with the reality of falling oil prices and the devaluation of the naira, there is no better time to implement the diversification of the country’s economy from oil, than now. 

“Nigeria’s revenue from crude oil is greatly threatened by the current happenings in the global market hence the government needs to quickly explore alternate sources of revenue, such as harnessing the opportunities available in the agricultural and solid mineral sectors. The Government should invest in machinery that would help industrialize these sectors and provide a readily available market for their products.

“Tax breaks could also be given to private investors ready to invest in these sectors. Additionally, value should be extracted from this produce to increase revenue, for example, rather than export cocoa, more value/revenue would be gotten from exporting chocolate instead. 

“Furthermore, increased revenue can be gotten from tax if proper data is developed and managed with all income leakage sources detected and blocked.  

“Also, citizens would be encouraged to pay their taxes if they are assured that these funds will be utilized properly as against it being mismanaged by the Government.” 

Finally, the time is ticking on Nigeria’s policy stakeholders, to start diversifying the economy fast, even before COVID-19 pandemic the world has begun to shift attention from fossil fuel to cleaner, renewable energy.




Olumide Adesina a French-born Nigerian, is an Investment Professional at Nairametrics Financial Advocates, owners of Olumide Adesina is a certified Investment trader, with more than 14 years of working experience. His work experience covers trading commodity derivatives and analysis of global equities, currencies, commodities, cryptocurrencies, and Fixed Income instruments. A member of the Chartered Financial Analyst Society. You can follow Olumide on twitter @tokunboadesina and email via

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CBN disburses N10.5 billion out of N100 billion credit to healthcare industry

The bank has approved and disbursed N10.15billion for some projects for the establishment of advanced diagnostic and health centres and the expansion of some pharmaceutical plants for essential drugs and intravenous fluids.”



COVID-19: NCDC equips testing centres in Ibadan, Abakaliki as figures continue to rise, CBN discloses conditions to assess N100b facility, identifies problems in processing facility

Out of the N100 billion credit intervention meant for the healthcare industry, the Central Bank of Nigeria (CBN) has disbursed N10.5billion to cushion the impact of the Coronavirus on the sector.

This was disclosed by the CBN Governor, Godwin Emefiele, in Abuja at the end of the MPC 273rd meeting held virtually.


According to the CBN boss, the apex bank had stipulated the requirements to access the funds. Part of it is that a corporate entity must submit its application to a participating financial institution (PFI) which could be either a Deposit Money Bank or a Development Finance Institution of its choice with a bankable business plan.

The guidelines stated that the PFI must appraise and conduct due diligence on the application; and upon approval by the PFI’s credit committee, the application would be submitted to the apex bank with relevant documents attached.

The CBN would process and disburse funds to the PFI for onward release to the project. It stated that the PFI must receive and review applications submitted by its customers; undertake due diligence based on normal business considerations, and bear the credit risk.

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They must also issue offer letters and forward qualified applications to the CBN; disburse the released funds to successful applicants; monitor the project and recover the loans from the beneficiaries, and maintain adequate records of all beneficiaries and facilities.

Emefiele said, “The committee recognised that under the N100bn healthcare sector intervention fund, the bank has approved and disbursed N10.15bn for some projects for the establishment of advanced diagnostic and health centres and the expansion of some pharmaceutical plants for essential drugs and intravenous fluids.”


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CBN disburses N50 billion loans through MFBs’ IT platform

It aims to enhance financial access, inclusion and sustainability of the microfinance institutions on value chain financing and ensure the growth of the small and medium scale enterprises.



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The Central Bank of Nigeria (CBN) is disbursing the N50billion COVID-19 Targeted Credit Facility meant for Households and Micro, Small and Medium Enterprises (MSME) that are affected by the killer disease via the Integrated National Association of Microfinance Banks Unified IT Platform (NAMBUIT) deployed by Inlaks.

NAMBUIT is a unified information technology built by Inlaks to service Microfinance banks on behalf of CBN and NAMBs. The innovation was designed to boost financial access, inclusion and sustainability of the microfinance institutions on value chain financing and ensure the growth of the small and medium scale enterprises. The NAMBUIT Platform, according to the Inlaks, is powered with a sophisticated Loan module for the management of the total life cycle of the over 80,000 loans that will be disbursed for this scheme.


Chief Executive Officer, African Operations, Inlaks. Femi Adeoti, explained that the platform runs on Temenos T24 Inclusive Banking Suite (IBS), and implementation is being managed by Inlaks, a system integrator in Sub-Saharan Africa, in line with global best practices, with support from the CBN.

“NAMBUIT is Software as a Service (SaaS) platform that reduces operational costs as well as improves the bank’s ability to provide necessary information to agencies such as CBN and NDIC. The unified platform comprises a core banking system and sub-systems for agent banking, non-interest banking, and mobile payment among other services.

“A core benefit of the NAMBUIT platform is the smooth on-boarding of the microfinance banks (MFBs) into the national payment system lowering the operating costs of MFBs significantly. This has been significant, especially in the context of developing economies, where many low-income households and micro-enterprises do not have ready access to financial services.”

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The CBN had introduced the N50bn Targeted Credit Facility as a stimulus package to support households and Micro, Small and Medium Enterprises affected by the COVID-19 pandemic. The N50bn intervention is financed from the Micro, Small and Medium Enterprises Development Fund. The loan amount is determined based on the activity, cash flow and industry size of the beneficiary, subject to a maximum of N25m for SMEs. Households with verifiable evidence of livelihood adversely impacted by COVID-19 can access the loan to a maximum of N3m.

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Covid-19 Update in Nigeria

On the 30th of May 2020, 553 new confirmed cases and 12 deaths were recorded in Nigeria bringing the total confirmed cases recorded in the country to 9,855.



COVID-19: FCMB reschedule operations

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to rise as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 9,855 confirmed cases.

On the 30th of May 2020, 553 new confirmed cases and 12 deaths were recorded in Nigeria.


To date, 9855 cases have been confirmed, 2856 cases have been discharged and 273 deaths have been recorded in 35 states and the Federal Capital Territory having carried out 60,825 tests.

Covid-19 Case Updates- May 30th 2020

  • Total Number of Cases – 9,855
  • Total Number Discharged – 2,856
  • Total Deaths – 273
  • Total Tests Carried out – 60,825

The 553 new cases are reported from 15 states – Lagos (378), FCT (52), Delta (23), Edo (22), Rivers (14), Ogun (13), Kaduna (12), Kano (9), Borno (7), Katsina (6), Jigawa (5), Oyo (5), Yobe (3), Plateau (3), Osun (1).

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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The latest numbers bring Lagos state total confirmed cases to 4755, followed by Kano (951), Abuja at 616, Katsina (364), Edo (284), Oyo (280), Borno (271), Jigawa (270), Ogun (259), Kaduna (244), Bauchi (236), Rivers (204), Gombe (156), Sokoto (116), Plateau (104).

Kwara State has recorded 87 cases, Delta (80), Zamfara (76), Nasarawa (62), Yobe (52), Akwa Ibom and Osun (45), Ebonyi (40), Adamawa (38), Imo (34), Kebbi (33), Niger (30), Ondo (25), Ekiti (20), Taraba and Enugu (18), Bayelsa (12), Anambra (11), Abia (10), Benue (7), while Kogi state has recorded 2 cases.

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, President Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.



READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

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