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Emmanuel Ibe Kachikwu, in an interview with CNBC Africa, also
said he was confident that an output reduction agreement agreed
in November would see oil prices hold.
Nigeria, which relies on crude sales for around two-thirds of
government revenue, saw its economy shrink 1.5 percent in 2016 -
the first full-year contraction in 25 years - largely due to
lower oil receipts.
Eleven of OPEC's 13 members along with 11 non-OPEC countries
agreed to make cuts for the first half of 2017, although Nigeria
and fellow OPEC member Libya were exempt due to production
setbacks suffered last year.
"OPEC members must lower production costs to compete better with
shale producers," said Kachikwu, quoted in a tweet on CNBC
Africa's Twitter feed.
Kachikwu said he was "impressed with the work OPEC has done" and
"confident prices will hold", but added: "What is more
fundamental is what OPEC countries can begin to do for
themselves in term of costs, diversification."
The Nov. 30 agreement to cut production prompted oil prices to
rise $10 a barrel, although they have been trading in a narrow
$3 range in the last few weeks. [O/R]
But analysts say that a revival in U.S. shale production is
likely to limit any major price recovery in crude oil.
(Reporting by Alexis Akwagyiram)
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