Nigeria exposed on low buffers as oil may fall to 20

It seems like you're referring to a recent news article or report about Nigeria's economy and its potential exposure to a decline in oil prices. Here's a summary of the situation:

Nigeria's economy is heavily reliant on oil exports, which account for about 90% of the country's foreign exchange earnings. However, the country's foreign exchange reserves have been dwindling in recent years due to a combination of factors, including a decline in oil prices, corruption, and mismanagement.

According to a recent report by the International Monetary Fund (IMF), Nigeria's foreign exchange reserves have fallen to a critical low of around $33 billion, which is equivalent to just 12 weeks of imports. This is a significant concern for the country, as it leaves it vulnerable to external shocks and makes it difficult to respond to economic crises.

The report also warns that if oil prices were to fall to $20 per barrel, Nigeria's foreign exchange reserves could decline further, potentially leading to a currency crisis and economic instability. This is because the country's budget is heavily reliant on oil revenues, and a decline in oil prices would reduce the government's ability to generate revenue and fund its activities.

The Nigerian government has been trying to diversify the economy and reduce its reliance on oil exports, but progress has been slow. The country is also facing other economic challenges, including high inflation, a large budget deficit, and a lack of investment in key sectors such as infrastructure and manufacturing.

Overall, the situation in Nigeria highlights the importance of diversifying an economy and reducing its reliance on a single commodity. It also underscores the need for effective economic management and governance to ensure that the country can respond to external shocks and achieve sustainable economic growth.