Oil Prices Surge Past $84, Impacting Nigeria's Economy

Oil prices surged toward $84 per barrel on Thursday, surpassing Nigeria's 2026 budget benchmark of $64.85 per barrel, according to Bloomberg. The Brent crude global oil benchmark rose by 12% in the first three days of the week, while West Texas Intermediate approached $78.

This price increase is linked to escalating tensions in the Middle East, particularly the U.S.-Israel conflict against Iran, which has disrupted crude oil flow. Analysts predict that these tensions will continue to drive oil prices higher.

The rise in oil prices is expected to boost Nigerian government revenue, despite the country's economy operating below its OPEC quota. However, local fuel consumption will be affected, with petrol prices increasing significantly.

Following Dangote Refinery's price hike announcement, the ex-depot rate rose to N874 per liter from N774, leading to retail prices in Abuja reaching N960 per liter from N875. Goldman Sachs Group Inc.

CEO David Solomon noted that the ongoing geopolitical tensions will have broader economic implications for Nigeria.