1. Nigeria has only one major export called crude oil

2. Nigeria belong to an association of crude oil producers called OPEC. In this association, Saudi Arabia is the boss. They dictate members’ behavior like how much crude to produce and the price.

3. Saudi has the second largest oil reserves of 266billion barrels behind Venezuela’s 300billion. Nigeria is number 11 with 37billion. United States has 50billion.

4. Saudi Arabia produces 10million barrels per day and has a population of 33million. Nigeria produces about 2 million barrels per day with a population approaching 200million.

5. It costs Saudi $9 to produce a barrel of crude. It costs Nigeria $23.

6. Saudi Forex reserve is $500billion it can finance 40 months of imports. Nigeria Forex reserve is $36billion and can finance 3months of imports max.

7. Saudi has $320billion in Sovereign Wealth Fund, Nigeria technically has $2,2billion.

8. Before Corona Virus added to oil price woes. Saudi threw Nigeria and smaller producing OPEC members under the bus because Russia refuses to cut production to prop price up. Saudi flooded the market and offered discount to buyers. Russia refused production costs because it thinks; cuts empower Shale producers in America.

READ MORE: https://thebelltimesng.com/2020/03/20/things-i-know-about-nigerias-economy-as-a-lay-person-by-bamidele-ademola-olateju/

Why does Nigeria have only one major export

the correct title of this should have been 'what i know of Saudi Arabia economy'

dmz1:
the correct title of this should have been 'what i know of Saudi Arabia economy'

What I understand is what is the essence of OPEC, formed by Saudi Arabia, when Nigeria suffers when oil price goes low.
Saudi will not suffer because they are wealthy; large amount of foreign reserve, sovereign wealth fund etc.
Cost of production per barrel is lower than that of Nigeria at $9 - $23, meaning they still have more profit even if they sell low.
What is now the essence of OPEC to Nigeria if our economy cant be considered when arriving at some policies?