New report warns Nigeria of declining global oil demand, urges focus on non-oil exports

By John Alechenu, Abuja

A caller survey has warned that Nigeria faces urgent economical challenges alongside imaginable opportunities arsenic planetary request for lipid declines.

The report, published by Climate Strategies and Salzburg Global, highlights however Nigeria’s dependence connected lipid and state revenues leaves the state susceptible to the accelerating planetary displacement distant from fossil fuels.

Authored by Dr. Oluwasola E. Omoju, the survey titled “Domestic Implications of Existing and Planned Oil and Gas Demand Reduction Strategies for Nigeria” notes that Nigeria, contempt holding immoderate of the world’s largest lipid and state reserves, is already grappling with declining lipid revenues, precocious accumulation costs, and constricted refining capacity.

“As cardinal export markets—including the EU, US, and India—intensify decarbonisation efforts, request for Nigerian lipid is projected to autumn sharply,” Omoju observed. He warned that this inclination could negatively impact authorities budgets, overseas speech earnings, and employment, peculiarly successful oil-dependent regions.

However, the study besides pointed to important opportunities. It suggested that declining fossil substance request could accelerate long-needed diversification into agriculture, manufacturing, coagulated minerals, and services—sectors with beardown imaginable for occupation instauration and inclusive growth.

Nigeria’s earthy state resources, captious minerals specified arsenic lithium, and its increasing renewable vigor assemblage were identified arsenic cardinal assets that could enactment sustainable prosperity successful the short- to medium-term.

The survey called for decisive argumentation action, including redirecting investments distant from costly lipid exploration into high-growth sectors, expanding non-oil exports, implementing taxation reforms to trim reliance connected lipid revenues, and partnering with the backstage assemblage to make renewable vigor and reskill lipid workers.

It besides emphasized leveraging earthy state and captious minerals arsenic modulation strategies, portion accelerating cleanable vigor deployment.

“This modulation tin beryllium an opportunity, not conscionable a threat,” Dr. Omoju stated. “Nigeria indispensable enactment present to diversify its system and guarantee a just, inclusive vigor future.”

The probe formed portion of the Prosperity Post Fossil Fuel Policy Dialogue connected Just Energy Transitions, a multi-year inaugural bringing unneurotic fossil fuel-dependent economies to navigate the risks and opportunities of the displacement distant from lipid and gas.

The station New study warns Nigeria of declining planetary lipid demand, urges absorption connected non-oil exports appeared archetypal connected Vanguard News.