Nigeria’s economy may be headed for uncharted waters as the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said the country will have to bring an end to oil production as the cost of producing the commodity remains stubbornly high.
Kachikwu made the shape-shifting declaration Monday during his address at the opening ceremony of the Nigeria Annual International Conference and Exhibition organised by the Society of Petroleum Engineers in Lagos, Punch writes.
According to the Oil Minister, the prohibitive cost puts Nigeria at a comparative disadvantage among her peers in the industry. He warned of ravaging effects on the country’s foreign reserves, saying the enterprise will remain propitious for only oil companies who are able to drive down costs. Kachikwu’s take comes at a time when oil hit a two-month high of $53 per barrel following a tightening of the US crude market and threat of sanctions over OPEC member, Venezuela.
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