Nigeria is joining other oil-producing nations to take action against the ongoing decline in oil prices, which is straining economies reliant on oil revenue. The sharp drop in April pushed Brent Crude to $63 per barrel, adding fiscal pressure on petrostates like Nigeria, Brazil, and Gulf countries.
Russia has also warned of potential economic impact. With 56% of Nigeria’s N54.35 trillion 2025 budget dependent on oil revenue, the country is particularly vulnerable to the downturn.
Nigeria’s 2025 budget, set at N54.35 trillion, heavily relies on oil revenues and targets a daily crude oil and condensate production of 2.06 million barrels at a benchmark price of $75 per barrel.
However, the recent drop in global oil prices below the benchmark, along with issues like pipeline vandalism, oil theft, and reduced investment, raises doubts about the budget’s feasibility and production targets.Nigeria’s N54.35 trillion 2025 budget depends heavily on oil, with a $75/barrel benchmark and 2.06m bpd target.
Falling prices and production issues like vandalism and low investment threaten its success. Oil at $60 is well below what major exporters need—Saudi Arabia’s breakeven is $91, per IMF.Low oil prices may force Saudi Arabia to boost borrowing and delay big projects. Kuwait passed a law to return to debt markets after 8 years, amid a recession worsened by OPEC+ cuts.
The IMF warns Kuwait is vulnerable to oil price swings and global slowdown. Experts say current prices fall far short of what oil-dependent nations need to balance budgets.Russia’s central bank warns the oil price drop and ongoing trade wars could hurt its economy by reducing global energy demand.
