As the oil and gas industry grapples with the down­turn, Africa’s oil-producing countries—which depend on crude oil exports for a large portion of state revenue—face a dismal situation. Despite recurrent steps taken by governments over the past decade to diversify their economies, enough hasn’t been done. Low crude prices could cause double digit recessions in African oil-producing countries this year, according to experts.

“By far, the biggest impact of low oil [and gas] prices has been on government budgets and capital invest­ment of oil companies,” said Keith Myers, president of research with Westwood Global Energy Group. “Post pandemic, about 1.1 MMbbl/d of OPEC production cuts have been allocated to African OPEC members, although Nigeria’s compliance with its 417,000 barrels per day cut was only 50% in May.”

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