Nigeria’s 2025 budget faces pressure as its crude blend, Bonny Light, is trading at about 71 dollars per barrel, below the government’s 75-dollar benchmark. Oil provides 80 percent of Nigeria’s foreign exchange and half of its revenue.
The budget is based on daily crude production of 2.06 million barrels, but falling global prices have reduced gains from premium Nigerian grades such as Bonny Light, Forcados and Qua Iboe.
Also Read: $77.96 Crude Oil Production Price Benchmark For 2024 Budget Realistic Says NNPCL
The decline follows an OPEC+ decision to raise oil output by 137,000 barrels per day from next month as part of a wider plan to release 1.65 million barrels per day earlier than scheduled.
Nigeria, which exceeded its 1.5 million barrel quota in June and July, has been lobbying OPEC for a higher production target of 2 million barrels per day by 2027. Analysts warn Brent crude could fall further to the low 50-dollar range next year.
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