Nigeria’s crude came down to $28 per barrel on Monday. The price is expected to fall further soon as Iran rejoins the market.
It costs many oil companies between $24 and $28 to produce a barrel of crude in Nigeria; it is far less (about $8) in a country like Saudi Arabia.
What this means is that many oil fields in Nigeria may shut down when it becomes unprofitable to produce crude in Nigeria.
A post-oil economy may be coming earlier than anticipated. What will Nigeria do? What will a majority of Nigerians do?
Unless the trend is reversed, public sector — and private sector — workers would not be paid salaries anymore. The economy would collapse along with the Nigerian state.