As companies such as LG and Magna goes into joint ventures in the production and distribution of electric car parts, there is ongoing fear that the sales of of crude oil may drop drastically worldwide.
The various Nations of the world that partronize Nigeria are now shiffting from fossil fuels to electric cars.
This change in direction is not a good news for a country like Nigeria, that depends a lot on crude oil as a source of revenue
According to reports ” sales of electric cars topped 2.1 million globally in 2019, surpassing 2018 – already a record year – to boost the stock to 7.2 million electric cars, with China leading the charge, according to the International Energy Agency”
It said nine countries had more than 100,000 electric cars on the road while at least 20 countries reached market shares above one per cent.
“In 2019, electric vehicles in operation globally avoided the consumption of almost 0.6 million barrels of oil products per day,”IEA
The demand for crude oil is expected to continue to decline following the surging sales in electric vehicles in Asia and Europe.
According to a UK newspaper, the Guardian, “Carmakers have sold more than 500,000 battery electric cars in Europe during 2020, compared to only 354,000 sold during the whole of last year across the region”
Europe is the biggest regional export market for Nigeria’s crude oil, followed by Asia.
An energy expert, Mr Bala Zakka, while speaking to the punch Newspaper said that the shift towards the use of electric vehicles and renewable energy would impact Nigeria’s oil export revenues.
He said, “It was a wrong thing for us, first of all, to export raw material. Organised nations convert their raw material into finished goods. Why can’t we convert our hydrocarbon endowment and start producing petrochemicals?”
An economic expert, Prof Obadan Mike, said weak demand had continued to affect the market for crude oil adversely, adding that oil had continued to be characterized by low prices
“The implications of weak recovery for global demand for crude oil, upon which Nigeria depends for its fiscal and foreign exchange sustenance, are very grave,” he said at the last Monetary Policy Committee meeting, according to a new document released by the Central Bank of Nigeria.
Countries such as Norway and France has announced plans to ban Internal combustion engines.