Big Boost for Nigerian Government Revenue as Crude Oil Prices Rise in the International MarketNigeria’s crude oil grades, including Bonny Light, Brass River, and Qua Iboe, have all witnessed an increaseAs an oil-dependent country, the rise in crude oil prices will support the federal government and bolster the CBN efforts to stabilize the naira
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria’s crude oil grades have kick off 2025 experiencing a collective price increase in the international market.
The development is a positive one for the federal government and the Central Bank of Nigeria desperate for dollar earnings.
Oil prices is good news for federal government
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Nigeria crude oil prices
The Whistler reports that Bonny Light crude oil surged by 4.16%, reaching $78.62 per barrel as of January 8, up from $75.48 per barrel on December 31, 2024.
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This marks an impressive gain of $3.14 per barrel since the beginning of the year.
Bonny Light, officially sourced by the Nigerian National Petroleum Company Ltd. (NNPC), remains a cornerstone of Nigeria’s oil exports.
Also Brass River crude oil also demonstrated significant growth, climbing 5.96% to $78.51 per barrel from $74.09 per barrel at the end of December.
Produced by the Nigerian Agip Oil Company (NAOC), Brass River has seen its prices rise by $4.42 per barrel over the past eight days.
This sweet medium-light crude variant is highly sought after in global markets, contributing to its strong performance.
Qua Iboe crude oil, another key grade, increased by 4.06% to $77.41 per barrel from $74.19 per barrel.
Mobil Producing Nigeria, a subsidiary of ExxonMobil, oversees the production of Qua Iboe crude. The grade’s price hike of $3.22 per barrel underscores its significance in Nigeria’s oil portfolio.
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Importance of Nigeria’s crude oil revenue
The rise in crude oil prices is crucial for achieving President Bola Tinubu N47.9 trillion 2025 budget.
The federal government dreams of raising N19.60 trillion or 56 percent of its revenues from the oil sector and N15.22 trillion or 43 percent of total revenues from non-oil sources.
This indicates that Nigeria has to earn more money from oil.
In the budget, the government has planned with the anticipation that oil will sell above $75 per barrel and Nigeria would produce at least 2.06 million barrels per day (bpd).
Additionally, the Central Bank of Nigeria (CBN) relies on revenue from crude oil exports for dollar inflows, which are used to meet foreign exchange demands in the market.
N55 billion to be spent on Nigeria’s presidential fleet
In another report, the Federal Government has budgeted N55 billion to be spent on presidential fleet maintenance in 2025.
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This sum will cover air navigation, cleaning, fueling, fumigation, total overhaul of three aircraft engines, and other maintenance cost of the presidential fleet.
The budget for the presidential fleet maintenance was contained in the 2025 Appropriation bill.
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Source: Henzodaily.ng