More worries for Nigeria’s troubled-economy as U.S. lifts sanctions on Iran

Oil vessel

Nigeria’s troubled economy, which is on the brink of a recession, is expected to worsen following the lifting of economic sanctions on Iran by the United States which effectively re-admits the country into the international oil trade.

The sanctions put in place in 2012 was lifted after Iran met the terms with six world powers to stop its allegedly weaponized nuclear programme.

“Today marks the start of a safer world,” said U.S. Secretary of State, John Kerry.

“We understand this marker alone will not wipe away all the concerns the world has rightly expressed about Iran’s policies in the region. But we also know there isn’t a challenge in the entire region that wouldn’t become much more complicated, much worse, if Iran had a nuclear weapon,” he added.

Iran has hailed the lifting of the sanction as a vindication of its power and influence in the world.

But Iran’s joy may be Nigeria’s woes.

With the lifting of the sanctions, Iran, which has the fourth largest oil reserve in the world (160 billion barrels) is expected to flood the international oil market with more oil which could worsen the ongoing glut that has reduced the price of crude from $105 per barrel to about $30 per barrel.

Also, the middle-eastern country recently announced that it is capable of producing oil at $1 per barrel; which means it can afford to sell its oil below the official international rate if it pleases.

The re-entry of Iran into the international oil trade could also see India, Nigeria’s top buyer of crude (India currently imports 750,000 barrels per day from Nigeria), look towards neighbouring Iran for its oil needs, further dipping Nigeria’s revenue stream. India buys about a third of Nigeria’s daily production while the U.S. currently buys none.

Last year, U.S. financial group, Goldman Sach, predicted that the present glut (without Iran’s supply) in the market could drive prices as low as $20 per barrel. This is an indication of a possible economic problem for Nigeria as the 2016 budget was benchmarked on $38 per barrel. This could possibly increase the budget deficit of $11 billion dollars.

A further drop in Nigeria’s oil export earnings is likely to drop the value of the naira below its present N305 to a dollar in the black market, a 43-year record.

President Muhammadu Buhari, so far, has resisted calls to devalue or float the Nigeria by discontinuing its dual exchange rate regime that seemingly only benefits few well-connect business moguls. The official rate of the Naira is about N197 to a dollar.

All attempts by the Central Bank of Nigeria, CBN, to arrest the fast plunge of the naira has so far been unsuccessful. The recent decision by the CBN to stop selling foreign currency directly to Bureau the Change operators has backfired, causing a drop in the value of the naira by almost N30.


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  • If only the recusant Goodluck Jonathan and his gang of looters had saved for the rainy day, we would not find ourselves in this present situation of economic stasis and quagmire. Now the old General is faced with a smorgasbord of problems including the ones he never envisaged. At the end of the day it is the masses that bear the brunt- they pay the price of having a harum-scarum leadership. This is the price you pay for prebendalism a concept that has become so ingrained in our political system. There is a glimmer of hope but with a huge sacrifice to be made.

    • jeff

      BS buhari and APC the looting claim is a scam. APC is obviously milking the situation to for their political agenda, only doltish Nigerians would believe the inflated amounts of money because you fail to understand the way government works, therefore people can make up random numbers and confuse most Nigerians without giving proper details or context.

      • bjay

        Please with this serious economic problem facing us as nigerians, when our Almighty pdp was in power crude oil sold at $105 per barrel now apc took over crude oil sell at $20 per now compell and see what is going to face economically.

    • Wakar

      Thank you for using the term ‘prebendalism’. I had not heard of it before, so I did some searching on Google and found it described on one web site as follows: “Prebendalism refers to political systems where elected officials, and government workers feel they have a right to a share of government revenues, and use them to benefit their supporters, co-religionists and members of their ethnic group. The term is commonly used to describe the patterns of corruption in Nigeria.” The description of it is very true, and accurately portrays all administrations since after the July 1966 coup, with the only difference being that it gets worse with each administration. Even General Gowon, who is not usually associated with corruption started a construction company in Jos named Andevco for his elder brother, Peter Gowon, who used to be a postal worker. Corruption is something 99% of we Nigerians love, which is why you never see a street demonstration against corruption. The only ones complaining are those that haven’t been ‘privileged’ to get their share.

      • Walter Debosky

        Wish I could update you a million times, 99% of Nigerians support corruption, wish Nigerians well in the coming economic tsunami!

  • Arogbo

    Now that US has lifts its sanction on Iran, the Iranians would soon flood the international oil market with cheap crude oil and by so doing the price of crude oil might fall further to 10 Naira per barrel. How can this government allow the likes of Jonathan, Iweala and others to be parading the globe as a statesman after mismanaging our economy. President Jonathan and all who served under him should be made to forfeit their assets to the Nigerian government, period.

    • Otile

      If Imam likes he can_fuck your wife in public you will still to blame Jonathan. Odale

      • Arogbo

        Make una stop complaining. Make una travel go obodo oyibo go conquer new territories. The Chinese own all the choice properties in Vancouver, Toronto, Seatle. We want the next black President of USA to be a Nigerian American. Tell your people to stop antagonizing everybody because there are lot of good Hausa Fulanis, Yorubas,Tapas, Tivs, Ijaws, Ibibios, Urhobos and all others all over the place. MKO(May his soul in peace) WAS MORE POPULAR IN THE NORTH THAN IBB, ABACHA, ABDUSALAM COMBINED. I REMEMBER VIVIDLY THAT CHARLES OPUTA (Mr. Charlie Boy) DEDICATED HIS RECORDING STUDIO AT GBAGADA IN HONOR OF MKO. ALIKO DANGOTE IS MORE POPULAR IN YORUBA LAND THAN A LOT OF RICH YORUBAS. ALIKO CAN SPEAK ONDO DIALECTS.No be mouth. Na brain nai book dey. AGBARI N’IWE WA. BIAFRA MY FOOT.

    • Otile

      If Imam likes he can_fuck your wife in public you will still continue to blame Jonathan. Odale

  • Arabakpura

    No one glories in another’s misfortune! If oil has become coca cola, Nigeria can go into other numerous resources she is blessed with!

    • Otile

      What then are they waiting for? Nonsense

      • Arabakpura

        It’s all been our perpetual standing but we hope there will be a clean break this time!

        • Otile

          But things are getting worse under the bungling leadership of Imam Mohamed Buhari.

          • Arabakpura

            It’s bad all over the world currently! If the past actors were still around, it would have been “badder”!

          • Otile

            Don’t say that it is bad all over the world. The countries who know what they are doing are just doing fine, but the lazy parasites depending on oil alone are crying wee wee wee. Whose fault is that?

  • smart G

    The only survival strategy of this APC government will be to keep dwelling on probe of missing money and blaming the past government.
    As long as some gullible goons keep hailing them that will be the only action in the next 3.2 years

  • John Smith

    Kai, Nigeria is screwed with the falling price of oil at this rate. The naira is only going to continue to fall with the fall in oil price.

  • True Nigerian

    Maybe Nigerians are just going to have the horrible country that most Nigerians deserve and their leaders deserve.

    A country where people celebrate waste, theft, and unthinking leadership can never fare better than the emerging picture of Nigeria.

  • ‘newsbreak’

    The US, EU and UN have
    lifted a raft of sanctions allowing Iran to export oil and free $100bn (£70bn)
    in assets frozen overseas. Within minutes, the United States formally lifted
    banking, steel, shipping and other sanctions on Iran, a major oil producer
    which has been virtually shut out of international markets for the past five
    years. This milestone will mean Iran will be able to sell its oil again on
    world markets and its banks will be able to connect to the global system. Iran
    has said it will sell up to 500,000 extra barrels of crude oil.

    Most oil traders
    have accelerated their sell-off of oil, gas and energy companies in the
    run up to Saturday’s well flagged announcement by the IAEA (International
    Atomic Energy Agency). And yet there’s been a rout on Gulf stock markets
    today (Sunday is a full trading day in the Middle East). In fact, the Tadawul All
    Share Index in Riyadh has halved since the summer of 2014 when oil prices
    started their precipitous fall from $115 to $29 per barrel.

    • Otile

      You must know that Iran does not survive on oil alone unlike Nigeria. If Tompolo blocks his oil away from Nigeria tomorrow Nigeria will fall and crash like humpty dumpty.

  • Burning spear

    Instead of Buhari to properly initiate ideas that would move the country forward, he is busy chasing Tompolo in the creeks of the Niger Delta—–He is not interested in searching for new customers for our crude oil—But into how Dasuki managed to be hired by Ijaw man Jonathan—So he must die like Ken Saro Wiwa–hanged until he gives up the Ghost–while the economy shrinks

    • Otile

      Perhaps Imam does not even know that the economy is shrinking. He is out there on a wide goose chase harassing his enemies.


    After Botched Backdoor Attempts, Buhari Finally Writes Senate To Withdraw 2016 Budget.

    President Muhammadu Buhari has written to the National Assembly to formally request the withdrawal of the 2016 Appropriation Bill he had presented to a joint session of the federal legislature on December 22 for adjustment, THISDAY has learnt. The president’s letter was addressed to Senate President Bukola Saraki and Speaker of the House of Representatives Yakubu Dogara.

    The formal request followed controversy over the alleged secret extraction and doctoring of the original budget document. The controversy over the budget had raged all through last week, as the National Assembly resumed after a recess and the legislators prepared to begin deliberation on the budget.

    • o’ willie



      • Otile

        What does he know? If it were not for the sheepish support he received from his Yoruba slaves today Imam would be somewhere at hanyan Kastsina tending his cattle. Slavery is a bane on society.

    • Otile

      When Imam Buhari presented the bogus budget we pointed out the folly to the unsuspecting, did his Yoruba slaves not try to chop off our heads? Why are they now trying to clean it up? Nonsense.

    • Zack Oji

      Confused Administration

  • ayobamiba

    Nigeria is in dire straight,jega is a curse to Nigeria,this period of time demands a sound and sincere management team that is devoid of hypocrisy, propaganda, malice,lies and falsehood peddling. This is where our nation is in very very bad situation. If buhari should throw away vindictiveness ,malice,hatred of Nigerians based on race,religion and ethnic consideration and galvanize Nigerians under one umbrella as a united nation, douse all the tensions that his vindictive approach to power has resurrected and resurged,stretch a sincere and practical hand of fellowship across the divide of Nigeria,this nation have abundant human and material resources to even use this great economic challenge as a springboard to greatness and prosperity. I am sad because buhari seemed to be weak,tired,expired ,unreachable, unserviceable ,myopically rigid and uncompromising no matter the reality on old man like buhari would have exploited and harvested the strength and great fortunes of Nigerian diversity and rallied it to the greatness of our nation and engrave his names among the hall of fame of great patriots but rather buhari have disappointedly engaged himself with pettiness, clannishness and malicious vendetta voyage akin to one chasing rat while his house and fortunes is on fire.may God give him the wisdom to understand and change from this myopia and misplaced fists of rage and unnecessary bitterness with which he has ran Nigeria aground within 8months on the sadle. May God deliver our nation from this self imposed affliction and calamity called ‘change’.

    • Otile

      How can this happen when the Fulanis are entrenched in clannish self centeredness? Did you not hear their leader immoral Sanusi Lamido Sanusi try to immortalize their crude past rulers? To be progress in West Africa Nigeria must divide. We shall no longer allow the Fulanis and Yorubas to rob us development and progress.

  • M A Sadiq Confidence

    One thing I am very much proud of…I am a Nigerian and I have no any country more than Nigeria. Like million of Nigerians who are prevently praying for change and it has come under the able leadership of PMB I also joined them in that crusade. God’s willing all those who are praying bad omen to Nigeria and all Nigerians it is my believe that they are not Nigerians. They have a mission to destroy Nigeria and God’s willing they will die unsuccessful for God has already protected the interest of the poor innocent Nigetians, this is my believe.