The price of Nigeria’s Bonny Light crude oil has dropped by 10.6% to $73.53 per barrel from $84.02 on January 15, falling below the Federal Government’s 2025 budget benchmark of $75 per barrel. This decline, coupled with oil production below the projected 2.06 million barrels per day (bpd)—recording only 1.737 million bpd in January—raises concerns about achieving the N36.35 trillion revenue target, which relies 56% on oil sales.
Experts warn that the fall in crude prices may negatively impact government revenue but could benefit businesses by lowering fuel costs, including petrol, diesel, and jet fuel. Industry leaders suggest that lower crude prices might reduce refinery costs, potentially leading to decreased petroleum product prices.
