Posted by By IKE NNAMDI on
America has warned that Nigeria faces the threat of a substantial loss in oil Dollars as a combination of factors have eroded the nation's revenue base and ability to attract foreign investors.
America has warned that Nigeria faces the threat of a substantial loss in oil Dollars as a combination of factors have eroded the nation's revenue base and ability to attract foreign investors.
The U.S. Chamber of Commerce has further added to the country's woes and has asked it's national planning business tips to Nigeria to reconsider because of poor power supply, lack of security and frequent militant attacks.
Reports that the price of oil continues to dive and foreign buyers are seeking for more reliable suppliers indicates leaner times for the country according to the U.S. Labor Department. Officials said the loss of production because of attacks in the delta could further reduce Nigeria's oil supply by about 30 percent and that a stronger dollar and weakening crude demand from China have worsened Nigerianís revenue future.
They said light sweet crude, Nigeria's main oil fell $1.45 to $113 a barrel in electronic trading on the New York Mercantile Exchange and lost 75 cents overnight to settle at $114.45, the lowest close for a floor session since May 1.
A report from China that the
Country's crude oil imports in July were down 7 percent from last year fueled expectations that the economic slowdown affecting the U.S.. and Europe may be spreading to Africa,Asia and cutting demand for oil. In London, Brent crude for September delivery fell $1.21 to $111.46 a barrel. Prices fell despite concerns that the widening conflict between Russia and Georgia over the breakaway province of South Ossetia could disrupt supplies in the region.
And while Nigeria continues to burn? its natural gas through flaring, the demand for heating and cooling gas rose and is expected to increase from 0.1 cent to $8.35 per 1,000 cubic feet.