{"id":33390,"date":"2019-07-18T15:31:22","date_gmt":"2019-07-18T14:31:22","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=33390"},"modified":"2019-07-18T15:35:53","modified_gmt":"2019-07-18T14:35:53","slug":"nigeria-may-not-survive-post-oil-economy-sbm-report","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/nigeria-may-not-survive-post-oil-economy-sbm-report\/","title":{"rendered":"Nigeria May Not Survive Post-Oil Economy \u2013 SBM Report"},"content":{"rendered":"

With most part of the world trying to move away from oil to adopt alternative and renewable energy, Nigeria\u2019s future in the post-oil world looks rather bleak, according to SBM Intelligence.<\/p>\n

The Nigerian economy is heavily dependent on its oil exports. According to the Nigeria Bureau of Statistics, crude oil exports contributed N3.376tn or 74.45 per cent to Nigeria\u2019s total exports in the first quarter of 2019. The Nigerian government has spoken of its plan to diversify its economy, in order\u00a0to be less dependent on oil but there have been very little results.<\/p>\n

\"\"<\/p>\n

SBM Intelligence, an organisation devoted to the collection and analysis of information, in a report titled Energy Revolution and Economic Disruption, notes that the inability of Nigeria to innovate as the world heads towards the post-oil economy could spell doom.<\/p>\n

\u201cThe federal government of Nigeria remains hopelessly addicted to crude oil revenues, and rather than innovate or truly revolutionise its economic base, the political elite only seems capable of focusing on areas in which some small amounts are already demonstrably available and then increasing taxes in those areas,\u201d SBM said in a special report released on Wednesday.<\/p>\n

Nigeria is struggling to grow its own food\u00a0and it is feeling the crunch of collapsing oil price with the success of unconventional oils \u2013 US Shale oil and Canada\u2019s Oil sands \u2013 in the market. After exiting a recession, the country has been seen its debt profile rise sharply with the country needing to borrow to fund its budget.<\/p>\n

According to SBM intelligence, the Shale Revolution has both an economic and a geopolitical impact. \u201cThe United States of America has displaced Saudi Arabia as the world\u2019s largest oil producer, and now accounts for 19% of global output.\u201d<\/p>\n

US currently\u00a0produces 15 million bpd, just 7 million shy of the combined output of Saudi Arabia and Russia, both second and third respectively in oil production while Nigeria produces 2.32 million bpd, according to the NNPC.<\/p>

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The demand for Nigerian crude oil has diminished with the US (formerly Nigeria\u2019s largest buyer) cutting most of its oil imports. Oil exports from Nigeria to the United States fell from 36.4 million barrels in July 2010 to just 5.6 million barrels in January 2019, according to the U.S. Energy Information Administration.<\/p>\n

\u201cThe Middle East and Nigeria used to be critical to America\u2019s energy security. They no longer are. 15 years ago, the US used to be the top destination for Nigeria\u2019s crude oil exports, today they barely buy anything from Nigeria, and India has replaced the US as Nigeria\u2019s top energy importer,\u201d the SBM report said.<\/p>\n

However, India\u2019s status as Nigeria\u2019s top energy importer could change with the competition in the energy market.
\nSaudi Arabia\u2019s crown prince, Muhammad bin Salman\u2019s visit to India in February 2019 is of critical importance, with the world\u2019s second-largest producer of oil looking to capture the Indian market.<\/p>\n

The energy revolution is also heavily impacted by the push for clean renewable energy with climate change concerns. Most economies across Europe and America are now investing heavily in the development of mass-produced electric cars.<\/p>\n

Going forward, strategic partnerships with Europe and America would be less about exports and more about migration and security.<\/p>\n

BloombergNEF projects that the number of electric vehicles<\/a>\u00a0in the world will increase from 1.1 million in 2017 to 11 million units in 2025. That number is expected to increase to 30 million units \u201cin 2030 as they become cheaper to make than internal combustion engine cars.\u201d<\/p>\n

\u201cSome nations will survive the post-oil economy in much better shape than others, and as things currently\u00a0stand, Nigeria cannot count itself in the former category.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

With most part of the world trying to move away from oil to adopt alternative and renewable energy, Nigeria\u2019s future in the post-oil world looks rather bleak, according to SBM Intelligence.<\/p>\n","protected":false},"author":6,"featured_media":23606,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,1593,17,624],"tags":[5883,5884],"coauthors":[2391],"class_list":["post-33390","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-metro","category-news","category-politics","tag-post-oil-economy","tag-sbm-report"],"yoast_head":"\nNigeria May Not Survive Post-Oil Economy \u2013 SBM Report - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/nigeria-may-not-survive-post-oil-economy-sbm-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nigeria May Not Survive Post-Oil Economy \u2013 SBM Report - National Wire\" \/>\n<meta property=\"og:description\" content=\"With most part of the world trying to move away from oil to adopt alternative and renewable energy, Nigeria\u2019s future in the post-oil world looks rather bleak, according to SBM Intelligence.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nationalwire.com.ng\/sub\/nigeria-may-not-survive-post-oil-economy-sbm-report\/\" \/>\n<meta property=\"og:site_name\" content=\"National Wire\" \/>\n<meta property=\"article:published_time\" content=\"2019-07-18T14:31:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-07-18T14:35:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/05\/Oil-platform-e1451947252563.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"400\" \/>\n\t<meta property=\"og:image:height\" content=\"295\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Friday Ekeoba\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#website\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/\",\"name\":\"National Wire\",\"description\":\"About Nigerians, Nigerian Business and Other Stories\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/nationalwire.com.ng\/sub\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/nigeria-may-not-survive-post-oil-economy-sbm-report\/#primaryimage\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/05\/Oil-platform-e1451947252563.jpg\",\"contentUrl\":\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/05\/Oil-platform-e1451947252563.jpg\",\"width\":400,\"height\":295,\"caption\":\"Nigeria\u2019s oil production, including condensates, increased to 2.07 million barrels per day (bpd) last month from 2.02 million bpd in March. 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