Nigeria's Oil Revenue Plunges as Global Demand Falls

Nigeria's oil revenue is expected to plummet by more than sixty percent from 2030, posing significant risks to the country's fiscal stability and economy. This decline is a result of the global shift towards renewable energy sources and electric vehicles, which will reduce demand for crude oil. The warning comes from a study conducted by the E3G think-tank.

The research notes that worldwide oil demand is expected to level off over the next decade, with a potential peak in the early twenties. This means that oil exporters will have to compete for a smaller pool of buyers. Countries like Saudi Arabia and the United Arab Emirates, which produce oil cheaply and have well-developed refineries, are likely to maintain their positions.

However, countries with higher production costs and less diversified economies, such as Nigeria and Algeria, face significant revenue cuts. The study estimates that Nigeria's oil revenue could drop by more than sixty percent, while Algeria could lose almost seventy-eight percent of its oil-based income.