The International Monetary Fund (IMF) has said that Nigeria and other oil exporters in African will lose a total of about $34bn in revenue as a result of the COVID-19 pandemic.
The IMF added that the projected decline in revenue is associated to the unstable global crude oil prices.
The Director of the IMF in the African Department, Abebe Selassie, stated this at the Africa Ministerial Roundtable on COVID-19 impact on the energy sector in Africa.
The fund made it cleared that African governments would be intensely pressure under budget and debt burden risen, noting that the burden would be higher among African countries that export oil.
It hinted that there could be a profound demand for energy if the cure to the pandemic could not be found on time.
Selassie noted, “The shock is certainly crippling fiscal resources in the short run, but it should not be allowed to wipe out the achievements in terms of human development over the last two decades.”
According to him, “The recovery on the continent depends crucially on investing in renewable energy which offers huge potential in terms of badly needed jobs and acquiring new technological capabilities.
“It would also help fight climate change and power the development of Africa.”
The International Monetary Fund added that since the collapse of oil price in 2014, production and investment of most oil exporters in Africa had been on the decrease.
It said the decline of structural issues, governance and security concerns could be blame for the dilemma in several countries, especially Nigeria and Libya.
