Nigerian Crude Oil Prices Exceed $70, Surpassing Budget

Nigerian crude oil prices have recently surged past $70 per barrel, surpassing the Federal Government's 2026 budget benchmark of $64.85. The latest trading shows Bonny Light crude at approximately $71 per barrel, despite a 0.7% drop from $72.3.

The rise in prices is influenced by geopolitical risks, particularly outside the Middle East, as U.S. military forces gather around the Red Sea in anticipation of renewed nuclear talks with Iran. The U.S.

Energy Information Administration (EIA) projects a medium-term increase in global inventories, which could outpace consumption. The Federal Government's budget is based on a conservative crude price of $64.85 per barrel, with an ambitious daily production target of 1.84 million barrels by January 2025.

Nigeria's average daily consumption and issues like crude theft and pipeline vandalism have cost the country billions in revenue. The government plans to launch a new licensing round for 50 oil blocks in January 2026 to attract $10 billion in new investments.