January 25, 2016 - 6:26 PM EST
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Oil Prices Threatening Nigeria's Economic Stability - Okupe

Former Senior Special Assistant on media and publicity to ex-President Goodluck Jonathan Dr. Doyin Okupe has said the volatility of oil prices in the international market is threatening the stability of the Nigerian economy.

Okupe who made the comment in a post on his Facebook wall said the present prices of crude oil hovering between $26 & $28 per barrel directly undermines the profitability of the crude oil enterprise, as the cost of production of crude in

is about $30 USD, second only to

Minister of state for petroleum Dr. Ibe Kachikwu however said at the weekend that even at $20 per barrel;

would still be able to make a profit of $7. He said the production of a barrel costs $13.

"The danger signal here is clear and profound. The implication of this price regime is that we begin to lose $4-$2 USD for every barrel of crude oil we produce. It is pertinent to state clearly here that this ominous situation is totally out of the control of the present administration.

"But because we are all stakeholders in the Nigerian project and also for the fact that any external threat to the survival or interest of

calls for a bi-partisan cooperation, it becomes imperative that we all put all heads together to find a solution," Okupe said in his post.

He called on the Federal Government to readjust the 2016 budget by reducing recurrent expenditure by 50%, while reviewing the capital expenditure to focus mainly on projects that will directly impact on production and export driven initiatives.

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Source: Equities.com News (January 25, 2016 - 6:26 PM EST)

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