FG’s 2025 Budget Threatened As Crude Oil Price Drops To $57 Per Barrel
Nigeria’s N54.99tn budget for 2025 is under threat as crude oil prices on Wednesday fell to a four-year low below the prices held during the Covid-19 era.
Crude oil prices fell to $57 per barrel barely 24 hours after President Donald Trump doubled its tariff on China to 104 per cent.
West Texas Intermediate (WTI) plunged by 3.93 per cent to $57.24 per barrel, while Brent Crude fell by 3.71 per cent to $60.49 per barrel by 16:58 GMT on Wednesday.
Nigerian crude grades, Brass River, fell by 5.39 per cent to $63.86.
Qua Iboe grade fell by 5.36 per cent to $64.21 per barrel of crude.
The new crude oil prices fell below Nigeria’s benchmark assumptions for its 2025 budget.
The budget places crude oil prices at $75 and a production of 2.06 million barrels per day.
Nigeria hopes to spend N54.99tn in 2025. A breakdown shows debt servicing of N14.32tn, capital expenditure N23.96tn, recurrent expenditure N13.64tn, and statutory transfers N3.65tn.
But Trump disrupted markets across the globe with his tariffs. Last week, Trump slammed China with a 34 per cent tariff on exports to the US.
Nigeria also received its share of a 14 per cent tariff.
China raised duties to 84 per cent on US goods in retaliation, but Trump went on a rampage with a 104 per cent tariff on China, sending more shocks to a global market.
The Nigerian government is already looking for ways to reduce the impact on its budget.
“We are also focusing on non-oil revenue mobilisation by FIRS and Customs.
“Budget adjustment and prioritisation where possible, and also innovative non-debt financing strategies,” Minister of Finance and Coordinating Minister of the Economy, Wale Edun, hinted during an event on Monday.
FG’s 2025 Budget Threatened As Crude Oil Price Drops To $57 Per Barrel is first published on The Whistler Newspaper
