TVC E, BUSINESS – Nigeria’s troubled economy may be worsened following the lifting of economic sanctions on Iran by the United States which effectively re-admits the country into the international oil trade.
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.
The re-entry of Iran into the international oil trade could also see India, Nigeria’s top buyer of crude look towards neighbouring Iran for its oil needs.
The move might further dipping Nigeria’s revenue stream.
India buys about a third of Nigeria’s daily production while the U.S. currently buys none.