The Nigerian National Petroleum Corp. recorded a loss of $1.9b in the first eight months of this year thanks mostly to fuel subsidies, reported Bloomberg.

At least 73% of the loss was due to deficit spending by its Pipelines and Products Marketing Co. unit comprising “claimable subsidy” payments, repairs, as well as product losses from ruptured and sabotaged pipelines

This was in a monthly report for August issued by the company itself on its website, in effort to bring transparency to the organization, one of the initiatives of Group Managing Director Emmanuel Kachikwu.

Another report, cited by Hellenic Shipping News, by global consulting firm Frost & Sullivan has predicted that both Nigeria and Algeria may face further decline in crude oil exports.

“While growth in Saudi Arabia, the United Arab Emirates and Egypt will pick up pace, Algeria and Nigeria will continue to grapple with the decline in exports and depreciation in currency, as per the consultancy,” it stated.

“Ongoing political tension in the country will heavily dampen prospects in the tourism sector. Largely reliant on earnings from oil and gas exports, Algeria and Nigeria will reel from low oil prices,” the study added.

Senior Research Analyst, Emerging Market Innovation at Frost & Sullivan, Krishanu Banerjee, explained that “Declining oil prices multiply the significance of diversification. Therefore, the development of non-oil industries like agriculture, banking, finance and tourism will become central to economic progress.”