Central Bank of Nigeria Foresees Dip in Crude Oil Earnings in 2024

SEATTLE (Oil Monster): The Central Bank of Nigeria (CBN) announced that the country’s earnings form crude oil is likely to nosedive in the fiscal year 2024. This was disclosed by Olayemi Cardoso, the Governor of the apex bank while addressing a meeting with the Senate and House of Representatives Joint Committee on Banking, Insurance and other Financial Institutions.

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The projected earnings dip is mainly on account of limit in crude oil production, theft and vandalization attempts and the divestment by the International Oil Companies (IOCs) from the upstream oil sector. The production limit for 2024 has been set at 1.78mbpd. There has been no relief in crude oil theft, pipeline vandalization acts and production shutdowns. The theft acts coupled with insecurity and hostilities in host communities has led to divestments by major oil companies.

Meanwhile, Cardoso foresees stabilization of inflation and exchange rates in the country. He maintained positive trajectory for domestic economy in the upcoming year. Although inflation pressures are likely to persist in short term, they are expected to witness decline in 2024. The smooth functioning of the foreign exchange market will significantly reduce exchange rate pressures, he added.