Ex-minister: Nigeria Should Withdraw From OPEC

A former minister of Petroleum Resources and directors of the Nigerian National Petroleum Corporation have questioned the country’s continuing membership of the Organisation of Petroleum Exporting Countries, Punch informs.

They stated that Nigeria’s membership of the cartel was currently hurting the economy and urged the country to pull out of the organisation.

Henry Odein Ajumogobia queried the country’s continuing membership of OPEC, saying the body had not protected Nigerian economic interests.

The former minister said: “Let me in conclusion prophesy that well before any significant volume of Nigerian oil production would have to be shut in on account that the production cost per barrel is more than the price per barrel, this ongoing price and market share war would have abated and OPEC would have reverted to its adapted role of working with large non-OPEC producers like Russia, Norway, Mexico and Oman to balance the market and stabilise the price in the interest of oil producers and consumers alike.This conclusion, however, makes me seriously question the benefit of our continuing membership of the organisation in the absence of any protection or leverage whatsoever within the organisation.”

He added that there seemed to be the desire of individual countries in OPEC, particularly Saudi Arabia and the Arab states, to protect and maintain their market share.

“Unfortunately, Nigeria with zero excess capacity, is a mere onlooker at the mercy of the two biggest oil producers in the world, namely the United States and Saudi Arabia,” Ajumogobia said.

Details on Punch

Source- Naij.com

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