Nigeria’s oil revenue faces 60% plunge from 2030 – Report

A recent report warns that Nigeria's oil revenue could decline by over 60 percent by 2030, due to the global decrease in demand for crude oil. The main reason for this drop is the shift towards renewable energy and electric vehicles. As countries move away from fossil fuels, Nigeria, which heavily relies on oil revenues and lacks diversification, faces severe risks of fiscal and economic instability.

The report, by the E3G think tank, predicts a plateau in global oil demand by the early 2030s, leaving higher-cost and less diversified producers like Nigeria to contend with a shrinking pool of buyers. This could result in countries struggling to fund basic services and service their debts, potentially sparking fiscal crises with wider security implications.

Beth Walker, a co-author, warns that governments are not adequately preparing for these outcomes, leading to a riskier transition for all involved. Nigeria, due to its population and influence in Africa, is particularly concerning. The report urges governments, the IMF, the World Bank, and private financial institutions to collaborate in helping oil-dependent economies prepare for declining revenues.