Rising Crude Oil Prices May Push Nigeria's Inflation to 20%

The Federal Government of Nigeria has expressed concern that the current rise in crude oil prices could lead to an inflation rate of 20%. This warning was articulated by Dr.

Tope Fasua, the Chief Economic Adviser to the President, during a monthly breakfast session with the Nigeria South Africa Chamber of Commerce. Fasua noted that the recalculated crude oil price, which is currently at 1.5 million barrels per day, could significantly impact the economy.

He emphasized that inflation could escalate if crude oil prices do not decrease, which would erode the purchasing power of Nigerians. The nation’s budget is projected at N100 trillion, and addressing infrastructure deficits is crucial.

Fasua also mentioned that the Federal Government is reviewing its revenue expectations due to increased tax inflows, with a target of N68 trillion, which he believes is insufficient. He urged state governors to borrow responsibly to transform infrastructure in their states.