Nigerians should buckle up and prepare for real tough times in at least the next three months, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, warned on Wednesday.
Mr Kyari gave the warning amid the global gloom trailing last Monday’s slide in crude oil prices to close to $30 per barrels following the growing impact of the coronavirus pandemic on the world economy.
The NNPC boss, who spoke at the Consultative Roundtable on the economy organised by the Central Bank of Nigeria (CBN), said this warning is based on his experience on how the global oil market works.
“Prepare for trouble for at least three months,” Mr Kyari said in his statement at the event. “Even if the price of crude oil goes back to $58 per barrel, the situation will still be tough, because there is a backlog of production hanging that has to be resolved.
“What that means is that we are going to have the impact of this low crude oil price for some time. The oil market is highly unpredictable. Nobody knows what is going to happen tomorrow.
“There are many forecasts. We said oil will be sold at about $60 per barrel this year. But we are already having $22 per barrel. Nobody knows what will happen next tomorrow,” he said.