Following the plummeting price of crude oil globally, the Managing Director of Nigerian Ports Authority (NPA) Ms Hadiza Bala Usman has canvassed for the diversification of Nigeria‘s economy through non-oil export.
Nigeria’s independent oil producers are being crushed by the international oil price crash, with current prices more than two times lower than the costs of local independents’ production.
Hadiza on Thursday explained that 78 per cent of Nigeria’s export was crude oil cargo, adding that crude oil cargo contribute the highest revenue of the nation’s Seaport.
Bala Usman explained that 191 million metric tons of export cargo passed through the nation’s ports in 2019, 78 percent of which was crude oil cargo while the remaining 22 percent was non-oil export.
Usman said: “Nigerian crude shipment is tied to exportation and it contributes the highest revenue of the ports. This underscores the importance of diversification of the economy through non-oil exports in order to reverse the trend,”
While emphasizing need for inter-agency collaboration, Usman pointed out the need to encourage local investors and make domestic investment a priority.
The NPA boss also disclosed that the agency was in discussion with the Lagos and Ogun State Government on how to establish modern trailer parks.
The new OPEC production cut deal would remove a total of 9.7million bpd from the market in May and June 2020. This enters into force on May 1.
This has also led to a delay in the May and June crude oil export plans of Nigeria National Petroleum Corporation (NNPC)