The impact of the COVID-19 pandemic is estimated to cost Nigeria and other oil exporters in Africa a total of about $34bn in revenue.
According to the International Monetary Fund, the projected decline in revenue is attributable to the dwindling global crude oil prices.
IMF’s Director, African Department, Abebe Selassie, disclosed this at the Africa Ministerial Roundtable on COVID-19 impact on the energy sector in Africa.
The fund noted that African governments would be under intense budget pressure and rise in debt burden, adding that such burden would be higher among oil exporting countries.
It said if the pandemic persists, it could transform profoundly the demand for energy.
“The shock is certainly crippling fiscal resources in the short run, but it should not be allowed to wipe out the achievements in terms of human development over the last two decades,” Selassie stated.
He added, “The recovery on the continent depends crucially on investing in renewable energy which offers huge potential in terms of badly needed jobs and acquiring new technological capabilities.
“It would also help fight climate change and power the development of Africa.”
The IMF noted that since the 2014 oil price collapse, production and investments of most African oil exporters had been on the decrease.
The institution blamed the decline on structural issues, governance and security concerns in several countries especially in Nigeria and Libya.