Nigerian Oil and Gas Industry Update Quarterly Newsletter Edition: 2020 - Q1
The global oil and gas industry has had a rocky start to 2020, having been hit by several challenges – the most significant of which is the effect of the COVID-19 pandemic on crude oil demand and the sharp decline in crude oil prices. Nigeria, with an oil-dependent economy, is highly vulnerable to the impact of these external shocks due to the country’s increased dependency on global economies for fiscal revenues, foreign exchange inflows, fiscal deficit funding and capital flows required to sustain the country’s economic activities.
This edition of the Nigerian Oil and Gas Industry Update provides information on some of the recent developments in the industry in the first quarter of 2020, how they are
impacting the industry and the Government’s response to these issues.
Impact of COVID-19 on Nigeria’s Upstream Oil and Gas Sector
The COVID-19 pandemic does not only present a severe health crisis for Nigeria, its impact reaches far beyond the health sector to other critical sectors of the country. The country’s upstream oil and gas sector, which provides a significant portion of Government revenue and foreign exchange earnings, is one such critical sector that has felt the ripple effect of the pandemic. Some key impacts of the COVID-19 pandemic to this sector are as follows:
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