The price of Nigeria’s Bonny light crude oil has dropped to $70 per barrel due to a ceasefire in the Israel-Iran conflict, posing a challenge to Nigeria’s 2025 budget, which was benchmarked at $75 per barrel.
The price of Bonny light crude oil decreased from $77 per barrel in June 2025 to $70 per barrel.
The drop in oil prices may affect Nigeria’s revenue, as the 2025 budget was based on a benchmark price of $75 per barrel.
According to Dr. Diran Fawibe, an expert in oil and gas industry said that the price drop is attributed to short-lived fears about possible disruption or restriction in oil flow.
Another expert, Prof. Wumi Iledare opines that the geopolitical situation may inject a short-term risk premium into global oil prices, but sustained price escalation is uncertain.
The International Monetary Fund has called on Nigeria to raise more domestic revenue, improve its budgeting process, and expand cash transfers to lift millions out of poverty.
