Nigerian Economy Threatened as Oil Slips Below $100 

The price of Brent fell below $100 on Monday with stakeholders expressing fears that the persistent fall in global oil prices and the inability of the country to meet local production targets are exposing the Nigerian economy to crisis.
While big global economies, including the United States, are re-strategising, Nigeria, according to experts, appears not to be bothered by the danger signals. Currently, oil prices are now too low for most members of the Organisation for Petroleum Exporting Countries to cover their spending needs, a Reuters survey shows. Although the cost of getting oil out of the ground is low in most countries in the cartel, growing social spending and ambitious infrastructure plans mean many oil producers now earn less from their oil sales than they need to fund their budgets. The weighted average of oil prices collected by OPEC member countries was $106 a barrel last year, just enough to cover their average budget requirements, the survey stated. But oil prices are falling, and the OPEC crude oil basket price was just $98.36 a barrel on Friday, the OPEC Secretariat calculated.

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