- Safiu Kehinde
An economic analyst, Charles Ikoku, has raised fear over falling price of crude oil at the global market.
In what he described as a jeopardy, Ikoku held that the drop of crude oil to $75 per barrel will gravely affect Nigeria’s budget which he claimed was designed around the crude oil production.
Ikoku made this known while speaking on Arise TV’s Day Break programme on Tuesday.
The analyst maintained that the 2025 budget was projected on a oil production of 2.6 to 2.2 million barrels per day.
This, according to him, has never been obtained as a report in March revealed that the country only managed to produce about 1.6 million barrels in March.
“What we even have here is a case of double jeopardy because the 2025 budget is projected on a oil production of about 2.6 or 2.2 million barrels per day.
“But we have not even near to that. From the record we have from relevant authorities, we did just about 1.6 million barrels in March.
“So, we are losing based on our inability to meet our quotas. At the we cannot sell at the projected price of $75 per barrel.
“So, it is actually double jeopardy.” He said.
Ikoku urged to government recalibrate over the uncertainties and unpredictability of Nigeria’s crude oil market situation.
The analyst held that a drop in crude oil price supposed to equally affect what is payed for pump price of petroleum products.
This, however, is not the case on account of the unpredictable nature of the country’s economy.
He noted that the most important thing is the impact the changes have on the ordinary man on the street.
“However, government needs to recalibrate.
“However again, when subsidy was removed from petroleum products, the experts gave all kinds of projections and benefits and thereof.
“So, at times as an average Nigerian, you don’t know whether to celebrate the fall or the rise.
“When oil price roses, the pump price of refined crude or products supposed to grow.
“But when it drops, based on economic matric, it supposed to equally affect what we are paying for pump price of petroleum products. But that is not the case. Nigeria’s economy at times, people have described it as voodoo economy.
“You cannot understand whether to celebrate high prices or to cry when the prices fall because the most important thing is the impact it has on the ordinary man on the street.
“If it doesn’t have any impact on me as an ordinary man, I will just look at the economic projection and shrug my shoulders.” He added.