Fitch Ratings, world’s leading risk analysts, has said that Nigeria’s oil export will record a 50 percent decline by end of this year due to the impact of the Coronavirus (COVID-19) pandemic on the economy.
Mahmoud Harb, Director, Fixed Sovereign Team, Fitch Ratings, stated this in a webinar on Sovereign Risk in Nigeria, saying that Nigeria’s oil revenue will, consequently, fall by the same magnitude at the end of the year.
The federal government earned N5.54 trillion from oil export in 2019.
According to him, the expected fall in oil export would result in the country’s current account balance remaining in deficit for three consecutive years in 2019 to 2021.
He stated: “The COVID-19 shock has aggravated the on-going pressures on external liquidity in Nigeria. These on-going pressures stem, first, from a shift of the long standing current account in plus to deficit in 2019 and increased reliance on portfolio inflows under the Central Bank of Nigeria (CBN) strategy of stabilising the nominal exchange rate.