Nigeria is staring down the barrel of another economic crisis as global oil prices plummet to levels last seen during the COVID-19 pandemic. Brent crude fell over 5% to $59.62 per barrel, far below Nigeria’s $75 benchmark for the 2025 budget.
The sudden drop comes on the heels of an escalating US-China trade war, with China retaliating against US tariffs by hiking its own tariffs from 34% to 84%, triggering fears of a global recession.
Analysts warn that Nigeria’s $37 billion budget and its projected $8 billion deficit are now under serious threat. Economist Paul Alaje cautioned that President Trump’s aggressive trade stance could destabilize Nigeria through rising import inflation and foreign exchange volatility.
Jide Pratt of Tradegrid added, “This crash in oil prices could force Nigeria to adopt a supplementary budget, seek more loans, or start selling off assets to stay afloat.”
Meanwhile, Nigeria’s oil production continues to underperform, falling to 1.46 million barrels per day, below the OPEC quota. Finance Minister Wale Edun has pledged increased production and stronger non-oil revenue strategies to cushion the blow.
Source: BusinessDay.ng
