The price of Bonny Light, Nigeria’s premium crude, has fallen by 20% to $67 per barrel from $84.02 in January 2025.
Just yesterday, March 5, 2025, the Richardian Times recorded a drop from $84.02 to $73.5 per barrel, signaling a rapid decline and raising concerns over the Federal Government’s ability to meet its 2025 budget revenue target.
The budget is based on a $75 per barrel oil price benchmark and production of 2.06 million barrels per day (bpd), with 56% of revenue expected from oil sales. However, with crude prices dropping and output at just 1.7 million bpd, there is a potential 10.7% shortfall in oil revenue.
The U.S. Energy Information Administration attributes the decline to rising global inventories and OPEC+’s decision to ease production cuts from April 2025.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, warns that lower oil prices could increase fiscal deficits and impact macroeconomic stability. However, he notes that a silver lining is the potential reduction in energy costs.
