21 July 2015, Lagos – Nigeria’s hope for an immediate recovery in the global price of crude oil may not be achievable in the foreseeable future, as a result of the return of Iran to oil export, after reaching a historic agreement with six global powers on its nuclear programme that would pave way for the lifting of the western sanction on its country.
Iran is expected to return to the global oil market at maximum capacity within a year.
Reacting to the development, Professor Tam David-West, a former Minister of Petroleum Resources, said that the return of Iran into the global oil market will further decline the oil price.
According to him, successive administrations have refused to plan the economy as a measure to guard against possible negative impact.
He blamed the past leaders for not diversifying the economy to grow other non-oil sectors. He also noted that Nigeria can survive the price decline if the present administration continues to checkmate corruption and cut excesses.
Also speaking, Mr. Yusuf Muda, Director General, Lagos Chambers of Commerce and Industry, LCCI, said that the likely lifting of sanction on Iran, would negatively impact the economy.
He noted that the situation would cause a decline in global oil price, which would also hurt the country’s economy against the backdrop of decline reserve, rising exchange rate, and dislocation of the economy. He added that the development will worsen the country’s economy.
‘‘The Federal Government needs to ensure quality control of resources management. If President Mohammadu Buhari, demonstrates prudent management, the negative impact on the supply glut on the economy would be reduced. He also needs to ensure better compliance by relevant agencies in the area of tax recovery.”