According to the International Monetary Fund (IMF) 2017 Article IV Consultation with Nigeria, significant increase in Nigeria’s crude oil production is expected to push economic recovery upward by 0.8 per cent this year, The Guardian reports.
IMF in the report released last week, noted that with oil receipts dominating fiscal revenue and exports, the Nigerian economy was hit hard by low oil prices and falling production, adding that under unchanged policies, the outlook remains challenging.
According to the agency, growth would pick up only slightly to 0.8 per cent in 2017, mostly reflecting some recovery in oil production and a continuing strong performance in agriculture, but policy uncertainty, crowding out, and foreign exchange (FX) market distortions would be expected to drag activity.
Nigeria’s crude oil production reached two million barrels per day in January and February, but dropped to 1.6 million barrels per day in March, due to the Turnaround Maintenance at Bonga by Shell Nigeria Exploration and Production Company (SNEPCo). SNEPCO has since completed the repair and crude oil production is expected to increase from April 2017.topics from