The Action Congress of Nigeria (ACN) has alerted the nation to an impending collapse of the Nigerian economy due to the precarious state of the oil industry, the country's main source of revenue.

The party warned that unless the Federal Government cuts the astronomical cost of running a bloated government and takes urgent measures to diversify the economy and shore up the production of oil, it may soon run out finances to pay its bills..

In a statement issued on Sunday by its National Publicity Secretary, Alhaji Lai Mohammed, the party, said the red alert was based on four empirical evidence, including high cost of production, crude theft, drop in oil reserves and the challenge posed by discovery of alternative energy sources.