The international oil benchmark, Brent crude, extended its gains on Friday, rising above $93 per barrel, in what is a potential boost to Nigeria’s crude oil export revenue.
Brent crude, against which Nigeria’s oil is priced, hit a fresh seven-year high of $93.44 per barrel on Friday, trading more than $30 higher than the Federal Government’s benchmark for the 2022 budget.
The 2022 budget, which was signed by President Muhammadu Buhari in December, was based on oil production of 1.88 million barrels per day, with an oil benchmark price of $62 per barrel.
For Nigeria, which relies on crude oil for about 50 per cent of government revenues and over 90 per cent of export earnings, rising oil price means increased revenue.
On the other hand, rising oil price also translates to increased cost of petroleum products as the country depends heavily on imports due to a lack of domestic refining.