Economists define the components of an economy using a simple equation where a country’s income equals the sum of consumption, investment, government expenditure and net exports (exports minus imports).
For Nigeria, all the components seem to be declining. Thanks to high rates of inflation (almost 18%), unemployment (33%), and falling exchange rates (₦600=$1), consumption and investment levels have dropped.
The other parts of the economy are also affected. Crude oil is the lifeblood of the other two vital components of Nigeria’s economy—government revenue and net exports. Oil earnings contribute at least 50% of government revenue, and crude oil made up 79% of Nigeria’s total export value for Q1 2022.
However, our crude oil production has been falling, and Stears has been ringing the alarm since last year.
Our crude oil production has never