Anxiety and fear have enveloped stakeholders in the nation’s oil and gas industry over the recent re-entry of Iran into the global crude market reports Sun Newspapers of Nigeria.
Already, there is strong apprehension that Iran’s latest return into the oil market may swallow over 150,000 direct and indirect jobs in Nigeria.
The dilemma is that Nigeria still depends on crude oil export for over 80 percent on its foreign exchange earning while importing much of its requirements including refined fuel from overseas.
Since 2012 when the US and Euripean Union imposed sanctions on Iran’s energy and financial services sectors, its oil exports have been cut by nearly half as a result, according to the US Energy Department.
However, six world powers, including the united States, recently reached a deal with Iran on limiting its nuclear activity in return for the lifting of international economic sanctions.
Nigeria exports crude to China, India and Japan. But if Iran pumps additional one million barrels per day into the same market, things may become difficult for Africa’s largest economy in financing projects and meeting other obligations.
Meanwhile, head of enerfy research at Ecobank Development Corporation (EDC) Nigeria Limited, Mr. Dolapo Oni, said he expects some job losses once the Iranian exports start.