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Oil crash compounds coronavirus hit for cash-strapped OPEC states
Collapsing oil prices are costing some OPEC members not only lost revenue when they most need it to tackle the coronavirus crisis, but also market share they may never recoup. OPEC producers such as Nigeria, Angola, Algeria and Venezuela cannot compete with the lower costs of erstwhile allies Saudi Arabia and Russia, who are flooding the market. The Republic of Congo’s oil minister wrote to OPEC secretary general Mohammad Barkindo this month asking for urgent talks to help to keep some members from sliding into recession. But while desperate for OPEC+, the Organization of the Petroleum Exporting Countries plus Russia, to ride to the rescue, Africa’s oil producers have little leverage.
“They have no power,” one Nigerian oil industry source told Reuters. “All they can do is ask.”
Although non-OPEC nations such as Britain, Norway and the United States all have relatively high-cost production, their diversified economies mean they are not dependent on oil. As well as hitting already tight budgets, the oil price drop had led oil majors to cut billions from spending plans. The longer-term impact for these nations’ comparatively costly fields could be far more painful.
“Companies are reviewing their whole portfolios on a daily basis,” said Roderick Bruce, principal research analyst for Africa at IHS Markit, which forecasts final investment decisions on the continent could hit historic lows this year. They (African countries) are in a very difficult position,” Bruce added, citing their higher production costs.
In Nigeria, for instance, production is forecast to fall by 35% without offshore field investments. Across Africa, Rystad estimates delayed spending could mean 200,000 barrels per day (bpd) drop in expected output by 2025. “The discipline that’s going to be introduced will be a shock to the system,” said Alex Vines, head of the Africa Programme at British think-tank Chatham House.
“This is really different terrain, and these are very vulnerable economies,” Vines added. The pain is even more acute in Venezuela, a founding member of OPEC, which is also dealing with U.S. sanctions, hyperinflation and exports limited by the loss of U.S. refinery buyers. Now Venezuela and others also face tougher competition from larger nations that are elbowing smaller sellers out of incredibly competitive spot trade. They cannot match the agile, aggressive marketing that saw Saudi Arabia slash its selling prices almost immediately after the collapse of the OPEC+ deal. By comparison, Nigeria took nearly two weeks to make record cuts to its official selling prices.
The country is also struggling to sell its oil, which is rich in the gasoline and jet fuel that the world is not using as a result of the coronavirus pandemic. Venezuela’s flagship Merey 16 crude has been selling at just $8 per barrel due to a combination of falling demand and U.S. sanctions, while Ecuador’s Napo and Oriente heavy crudes have remained below $15 per barrel. While Angola’s production has fallen from close to 2 million barrels per day (bpd) a decade ago to 1.4 million bpd, it had been in the midst of reforms which were meant to boost output. And Equatorial Guinea is trying to auction new licenses and find a replacement for ExxonMobil, which wants to leave. The sudden cash crunch is also hindering the ability of these oil producers to manage growing coronavirus outbreaks. A group of African finance ministers has called for a $100 billion stimulus package to help deal with the pandemic. President Nicolas Maduro said this month that Venezuela is selling its oil below production costs, though he did not announce any action to offset the revenue loss.
Ecuador’s Vice President Otto Sonnenholzner, meanwhile, said his country is struggling as it faces a $325-million payment this month as part of a debt repurchase deal. Health systems across these OPEC producers are already chronically underfunded and living conditions dangerously cramped, while the oil crunch also casts doubt on whether nations can craft rescue packages or pay soldiers and police to enforce lockdowns or combat unrest. In Venezuela, water supply problems led some hospital staff to use paint buckets as improvised toilets, and shortages mean workers re-use medical gloves. Nigeria, which cut nearly $5 billion from its budget, said it needs 120 billion naira ($333.33 million) to fight the coronavirus outbreak. Algeria, whose public debt rose to 45% of gross domestic product at the end of last year from 26% in 2017, plans 30% public spending cuts and has directed state energy firm Sonatrach to halve planned investment to $7 billion. Angola said it will experience its fifth year of recession in 2020, plans to slash its budget, but protect health and food spending, while debt-ridden Congo Republic has been trying to renegotiate $1.7 billion of oil-backed loans.
Reuters
Cardano (ADAUSD) climbed amidst tight trading activities in the crypto market, up by 1.05% in the past 24 hours, showing resilience near key support.
The price ticked up on Sunday amidst negative movements in the global crypto market. The gain has reduced its negative movement in the week to 1%. Cardano is showing strength with a $70 million ADA treasury push and a bullish December setup, but it faces key resistance amidst competing traders.
The token is trading at $0.4165 at the time of filing the report on Sunday, gaining more than 1% on the day as volume traded reached $359.252 million. The token is in a notable correction from its November highs. Recent trading activity reflects pronounced investor caution. Over a 30-day period, ADA has declined approximately 15%, mirroring the broader pressure on risk assets from macroeconomic uncertainties.
Sentiment trades mixed, as retail and mid-sized investors are accumulating at lows, but large holders remain sceptical. Cardano’s privacy-centric Midnight Network went live after years of development, introducing NIGHT – the first native asset on Cardano.
According to crypto analysts, Short-term speculation around NIGHT airdrops and interoperability boosted ADA demand. ADA rebounded from $0.371–$0.416 after testing an ascending trend line connecting 2023–2025 lows. Traders interpreted the bounce as a bullish divergence, but ADA remains below critical resistance of $0.5113 and its 200-day EMA of $0.68.
ADA’s minor rally reflects optimism around Midnight’s launch and oversold technicals, but scepticism about its ecosystem impact and whale selling caps upside. While the price surges, analysts stated that Cardano balances technical hope against macroeconomic headwinds, with Midnight’s adoption trajectory and $0.51 resistance serving as critical watch points.
While governance upgrades signal maturing decentralisation, crypto analysts are still querying whether ADA can leverage these developments to reverse its 2025 underperformance.
The National Drug Law Enforcement Agency has recovered over 7.6 million pills of tramadol and a total of 76,273.4 kilograms of different strains of cannabis.
The agency’s spokesman, Femi Babafemi, said this in a statement on Sunday in Abuja. Mr Babafemi said that the drugs, including Colorado, Loud and Skunks, had several members of drug trafficking organisations linked to the seizures arrested.
He said that out of the total opioids seized during the raids, not less than 3,874,000 pills of tramadol, 225mg and 100mg, and others, as well as 252.2litres of codeine syrup were recovered. He said that they were recovered from a warehouse at Oko market, Asaba, Delta, on Saturday. He also said that no fewer than 1.2 million tablets of tramadol 225mg were seized from a suspect on December 3.
This, he said, was when NDLEA operatives on patrol at Orogwe, along the Onitsha-Owerri road, Imo, intercepted his vehicle conveying the consignment, which was loaded at Aba, Abia, and heading to Onitsha, Anambra. Meanwhile, in Adamawa, NDLEA officers on December 1 intercepted a Toyota Hiace bus marked MGU 554 XB along Maraba-Mubi, coming from Jos, Plateau state, and heading to Mubi, with a total of 1,577,112 capsules of tramadol.
“Other drugs intercepted were Exol-5 tablets, all concealed inside jumbo bags mixed with new rubber sandals and slippers. Two suspects were arrested in connection with the seizure. Similarly, another 27-year-old suspect was nabbed along Zaria-Kano road, Kano state, with 197,000 pills of exol-5,” he said.
The NDLEA chairman, Buba Marwa, commended the officers and men of the SOU commands in Delta, Adamawa, Imo, Ondo, Lagos, and Kano for the arrests and seizures. Mr Marwa said that their operational successes, along with those of their compatriots across the country, especially their balanced approach to drug supply reduction and drug demand reduction, were well appreciated. NAN
The Presidential Enabling Business Environment Council (PEBEC) has released the 2025 Subnational Ease of Doing Business (EoDB) Report, with Lagos emerging as the best-performing state, scoring 85.6 per cent.
The report released by the director-general of PEBEC, Zahrah Mustapha-Audu, has Kaduna in second position with 65.1 per cent. Oyo, FCT, and Ogun rounded up the top five with scores of 62.7 per cent, 61.0 per cent, and 59.9 per cent, respectively. Others include Enugu (56.2 per cent) in sixth position, with Plateau (56.2 per cent), Ekiti (55.8 per cent), Kano (54.8 per cent), and Nasarawa (53.4 per cent) rounding out the top 10 states.
The EoDB report is a comprehensive data-driven assessment of how Nigeria’s 36 states and the FCT are shaping business competitiveness through regulation, infrastructure, and administrative efficiency.
The report assesses performance across 16 indicators and 36 sub-metrics covering electricity, infrastructure, digital connectivity, land administration, taxation, trade logistics, justice delivery, investor support and skilled labour readiness.
According to the DG, these states distinguished themselves through consistent reform momentum, improved digital processes, and more predictable regulatory environments. “The 2025 Report also highlights five priority interventions states can implement immediately. These include establishing investor aftercare systems, strengthening MSME credit enablement, harmonising interstate trade rules, upgrading commercial justice processes, and improving power reliability for industrial clusters,” she said.
According to her, PEBEC will continue to support state-led reform adoption, particularly under the $750 million State Action on Business Enabling Reforms (SABER) programme. She added that “the 2025 Subnational EoDB Report provides a critical foundation for policy action, investment decisions, and long-term competitiveness across Nigeria.”
The DG said the Subnational Ease of Doing Business Report is available for download at www.pebec.gov.ng/reports
PEBEC had earlier released its 2025 Business Facilitation Act (BFA) Performance Report, covering MDAs’ performance from January to October. This performance report is part of the council’s effort to track and measure the compliance of federal government MDAs with the BFA’s requirements on promoting Transparency and Efficiency of government-delivered services to the business community.
The report presents a data-driven assessment of 69 priority MDAs, drawing on monthly compliance submissions, independent mystery shopping, website audits, ReportGov analytics, and targeted process-verification exercises.
According to the report, the top five performing MDAs include the Nigerian Content Development and Monitoring Board (NCDMB), with an impressive 90.6 per cent score, followed by the National Drug Law Enforcement Agency (NDLEA) at 89 per cent. The Nigeria Customs Service (NCS), ranks third with 86.6percent, the Nigerian Communications Commission (NCC) and Nigerian Ports Authority (NPA) secured the fourth and fifth positions, scoring 85.3 per cent and 84.2 per cent, respectively.
PEBEC, currently chaired by Vice President Kashim Shettima, was established in July 2016 by the federal government to oversee Nigeria’s business environment intervention. It has a dual mandate of removing bureaucratic and legislative constraints to doing business and improving the perception of the ease of doing business in Nigeria. NAN
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