COVID-19

COVID-19

Our COVID-19 column provides insights from experts on the impact of the coronavirus on Nigeria

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Rebound ready: government support for oil and gas

Yvette Uloma Dimiri

Yvette Uloma Dimiri

Yvette is a media professional. She is the Growth Editor for Stears Business. Before switching to media, she worked as an analyst for an oil and gas service firm. She has a B.A in Political Science from The University of Chicago.


When driving in Texas, a major oil-producing state in the United States, if you look at the bumpers of the oversized trucks, you might see a sticker that reads, “Lord, give me one more oil boom and I promise, I won’t mess it up.” 

The message accurately captures what Nigeria’s Federal Government must be praying for right now.

An overreliance of oil in the middle of a global pandemic means the country’s economy will contract by 3.4% while the 2020 budget, like other nations, will be revised downward.

Perilous times indeed, but it stands to reason that the only industry currently capable of such an impact, might also be the only one capable of alleviating the situation- 'Oil'. 

 

Who deserves a bailout?

In 2008, during the Great Recession, the United States government made the controversial decision to spend $80 billion rescuing its car industry. 

If the US hadn’t made that decision, 3 million jobs would have been lost and the recession would have been deeper. Instead, the car industry made an outsized contribution to economic recovery, including the sustenance of the city of Detroit- the centre of the US automobile industry.

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