Further slip in oil prices threatens Nigeria’s budget as Brent plunges to $56 per barrel

The international oil benchmark, Brent crude, against which Nigeria’s oil is priced, fell by $2.60 to $56.34 per barrel as of 8.10pm on Wednesday.

The oil price which traded below Nigeria’s 60 per barrel budget benchmark on Monday lost more than 20 per cent since hitting its 2019 peak in April.

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The decline in oil price poses a serious threat to Nigeria’s economy as the 2019 budget is based on an oil benchmark of $60 per barrel.

The 2019 budget, which was signed by President Muhammadu Buhari in May, was based on oil production of 2.3 million bpd (including condensates) with an oil benchmark price of $60 per barrel.

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