Nigeria Nigeria’s Budget 2025 in Jeopardy as Oil Prices Plunge to $59

Nigeria's 2025 budget, predicated on a $75 per barrel oil benchmark, faces significant challenges as global oil prices drop to $59 per barrel. This shortfall threatens revenue projections and could impact public spending.

• Oil prices have fallen to $59 per barrel, below the $75 benchmark set for the 2025 budget.
• Nigeria's oil production, including condensate, decreased to 1.6 million barrels per day in March, short of the 2 million bpd target.
• Global market volatility, influenced by increased production and U.S. tariff policies, contributes to the price decline.
• Experts warn that continued low prices may necessitate budget adjustments or increased borrowing.

The unexpected drop in oil prices presents a significant hurdle for Nigeria's economic plans. With oil revenues constituting a substantial portion of the national budget, the government may need to explore alternative funding strategies or adjust spending priorities. This situation underscores the importance of diversifying the economy to mitigate reliance on oil exports.

As Nigeria navigates these fiscal challenges, the focus may shift toward economic diversification and prudent financial management. Stakeholders and citizens alike will be watching closely to see how the government responds to ensure economic stability.