What the falling oil price means for nigeria lawan

The falling oil price has significant implications for Nigeria, and specifically for the country's economy and the government's plans. Here are some potential effects:

  1. Reduced government revenue: Nigeria's economy is heavily reliant on oil exports, which account for about 90% of the country's foreign exchange earnings. With a lower oil price, the government's revenue will decrease, making it challenging to fund its activities and projects.
  2. Budget deficit: The Nigerian government had budgeted for an oil price of $60 per barrel in 2020. With the current price below $40 per barrel, the government will likely face a significant budget deficit, which could lead to reduced spending on infrastructure, healthcare, and education.
  3. Inflation: A lower oil price can lead to lower import costs, which could help reduce inflation. However, Nigeria's economy is also heavily dependent on imported goods, and a lower oil price may not be enough to offset the impact of a weaker naira (Nigeria's currency).
  4. Devaluation of the naira: The falling oil price could lead to a devaluation of the naira, making imports more expensive and potentially leading to higher inflation.
  5. Impact on foreign exchange reserves: Nigeria's foreign exchange reserves are already under pressure due to the country's large trade deficit. A lower oil price could further erode these reserves, making it challenging for the government to meet its foreign exchange obligations.
  6. Reduced investment: A lower oil price can lead to reduced investment in the oil sector, which could have long-term implications for Nigeria's economic growth and development.
  7. Increased poverty: The impact of a lower oil price on the Nigerian economy could lead to increased poverty, as the government may be forced to reduce spending on social programs and services.

For Lawan, the President of the Senate, the falling oil price means:

  1. Reduced allocation to the National Assembly: The National Assembly's budget is largely dependent on the government's revenue, which will likely decrease due to the lower oil price. This could lead to reduced allocation to the National Assembly and potentially impact its operations.
  2. Challenges in implementing legislative priorities: The National Assembly has several legislative priorities, including the passage of the 2020 budget and the Petroleum Industry Bill. The falling oil price could make it challenging for the government to implement these priorities, potentially impacting the National Assembly's ability to achieve its goals.
  3. Increased scrutiny of government spending: The National Assembly may face increased scrutiny from Nigerians and international organizations regarding the government's spending habits, particularly in light of the reduced revenue. Lawan and the National Assembly may need to be more transparent and accountable in their budgeting and spending decisions.

Overall, the falling oil price presents significant challenges for Nigeria's economy and government, and Lawan and the National Assembly will need to work together to mitigate the impact and find ways to diversify the economy and reduce its reliance on oil exports.