…As oil price intensifies decline

•Bonny light hits new low

•Decline will continue this week – Analysts

•Global energy analysts give reasons for the decline

By Obas Esiedesa & Ediri Ejor

The renewed trade war between the United States of America, USA, and some developed economies has put more pressure on crude oil prices bringing more threat to Nigeria’s 2025 budget.

Global crude oil market closed lower with Bonny Light, Nigeria’s premium crude oil grade, dropping to $70.3 per barrel, weekend, indicating significant 13 percent decline since the 2025 budget was passed and trend to about 6.7 percent below the 2025 budget benchmark of $75 per barrel.

Industry experts told Financial Vanguard that the downward trend would continue this week given the root cause.

The renewed downward trend began early last week when US President, Donald Trump, signified his intention to sustain tariff war across selected major global economies.

This came at same time the Organization of the Petroleum Exporting Countries and allies including Russia, OPEC+, decided last Monday to increase output for the first time since 2022, pressuring crude prices further down.

Oil industry analysts told Financial Vanguard that with N20.35 trillion or 56 percent of Federal Revenue expected to come from oil out of the N36.35 trillion revenue target, the decline in crude oil price has raised the possibility of increased budget deficit for the year, and possibly increase in borrowing to fund deficit spending.



https://www.vanguardngr.com/2025/03/global-tariff-war-impacts-nigerias-oil-revenue-target/