Nigeria's Oil Revenue May Plunge Over 60% by 2030

A report by the E3G think tank, published by The Guardian UK, warns that Nigeria's oil revenue could drop by more than 60% starting in 2030 as global demand for crude oil declines. This decline is attributed to a global shift towards renewable energy and electric vehicles, which threatens the fiscal stability of oil-dependent nations.

The report indicates that Nigeria, heavily reliant on oil revenues with limited economic diversification, is among the countries that could be severely impacted. It forecasts that global oil demand will plateau in the coming decade, with a peak expected in the early 2030s, leading to increased competition among oil producers for a diminishing market.

Countries with lower production costs and better infrastructure, such as Saudi Arabia and the United Arab Emirates, are likely to fare better. The report also highlights that oil revenue constitutes over 40% of government income in 17 countries, with Nigeria facing significant challenges in providing public services and addressing potential security issues as oil income declines.