The submersion of East Asian markets into coronavirus-induced recession has pulled down several major oil producers, most notably Nigeria whose breakeven price is well above $100 per barrel (Fitch puts it at $144 per barrel). Depending on its crude production for 60% of government revenue, Nigeria was confronted with a double whammy of falling oil prices and general economic decline – to the extent that Lagos has applied for some 7 billion in SARS-COV-2-related emergency funds provided by the IMF and the World Bank. Nigeria’s credit ratings were downgraded by both S&P and Fitch (Moody’s kept the negative outlook without downgrading) and things seemed as if the most populous country in Africa might be in for some serious trouble. Part of the anxiety was due to the fact that Nigeria agreed to participate in the unprecedented Russia-Saudi Arabia-United States crude production curtailment and vowed to drop output levels by […]