Today’s meeting of the Organisation of Petroleum Exporting Countries (OPEC) will debate whether or not to cap Nigeria’s output at 1.8million barrels per day, a source close to the meeting said yesterday.
Libya’s output may also be capped at one million barrels per day, it was learnt.
The two countries have so far been excluded from supply curbs due to falling production amid unrest.
The 14-member OPEC meets to decide whether to extend production cuts until the end of 2018.
Should this decision be taken, Nigeria’s 2018 budget projection of 2.3million barrels per day will become unrealistic. It may even render the entire budget invalid. Oil is the mainstay of Nigeria’s economy.
Africa’s biggest oil producer and OPEC member was hit hard by the sharp drop in global oil prices in 2014 that pushed it into its first recession in 25 years. Nigeria returned to growth-mode in the second quarter.
The NNPC is looking to set up a 3.
Budget 2018 at risk as OPEC mulls capping Nigeria’s output at 1.8m bpd
