Nigeria to Gain N6.8 Trillion from Oil by 2026

According to a report by BMI, a unit of Fitch Solutions, Nigeria is expected to gain N6.8 trillion from oil revenues by 2026, with a GDP growth forecast of 4.4%. The report highlights that the increase in crude prices, driven by the ongoing US-Iran conflict, will strengthen the country's fiscal outlook.

BMI notes that Nigeria's fiscal position will significantly benefit from higher oil prices, with Brent crude projected to average $78 per barrel in 2026. The report emphasizes that Nigeria is less exposed to economic disruptions from conflict compared to other Sub-Saharan African economies, which supports an improved growth outlook.

Structural reforms in Nigeria's oil sector, particularly the removal of fuel subsidies to allow domestic prices to reflect global market conditions, are expected to support government revenue and improve macroeconomic stability. However, concerns about inflation due to rising fuel prices are anticipated to be temporary as current macroeconomic conditions are managed.