Oil down by $10, new headache for Nigeria’s economy .

Nigeria’s economy faces fresh risk as international crude oil prices slump by $10 per barrel, threatening the country’s already stretched fiscals and exposing deep-rooted vulnerabilities in Africa’s largest crude oil producer.

The decline, driven by US President Donald Trump’s tariffs of at least 10 percent and potential countermeasures, have deepened the selloff, sending Brent futures down $10.05 to settle at $64.9 per barrel on Friday.

Another shocking factor is the surprise Organization of Petroleum Exporting Countries and Alliance (OPEC+) decision to accelerate production increases in May.

Eight OPEC+ member countries agreed to gradually ease voluntary output reductions totaling 2.2 million barrels per day (bpd), increasing their combined production quotas by 411,000 bpd starting in May, the cartel said in a statement following a meeting to assess global oil market dynamics.

Nigeria’s President Bola Tinubu’s 2025 budget is anchored on a benchmark oil price of $75 per barrel and an ambitious production target of 2.06 million barrels per day, a target that now seems unachievable.

Oil accounts for approximately 90 percent of Nigeria’s export earnings and 60 percent of government revenue. A drop in oil prices directly affects the nation’s ability to fund critical infrastructure projects and social programmes. The government may face increased pressure to borrow funds, further deepening the country’s debt crisis.

The timing could not be worse as Nigeria is grappling with inflation, persistent naira depreciation, and an over N1.2 trillion monthly petrol import bill following the removal of fuel subsidies.

Source: Businessday