Nigeria’s major crude oil grades, including Bonny Light, Brass River, and Qua Iboe, have seen a significant rise in prices in the international market. This is welcome news for the Nigerian government, which heavily depends on oil revenue to fund its budget and stabilise the economy.
Crude Oil Price Increases:
- Bonny Light:
The price of Bonny Light crude rose by 4.16%, now selling at $78.62 per barrel as of 8 January 2025. This is an increase of $3.14 per barrel from $75.48 at the end of December 2024. Bonny Light, a key export for Nigeria, is managed by the Nigerian National Petroleum Company (NNPC). - Brass River:
Produced by the Nigerian Agip Oil Company, Brass River crude oil climbed 5.96%, now at $78.51 per barrel, up from $74.09. This is a $4.42 increase in just eight days. - Qua Iboe:
Qua Iboe, produced by ExxonMobil’s Nigerian subsidiary, also recorded growth, increasing by 4.06% to $77.41 per barrel from $74.19. This marks a $3.22 increase since the start of the year.
Impact on Nigeria’s Economy:
This rise in crude oil prices comes at a critical time as Nigeria’s 2025 budget relies heavily on oil revenue. The government expects to generate ₦19.60 trillion (56% of total revenue) from the oil sector, with a projected daily production of 2.06 million barrels and an average price above $75 per barrel.
How It Helps the Naira:
The Central Bank of Nigeria (CBN) relies on dollar inflows from oil exports to stabilise the Naira and meet foreign exchange demands. Higher oil prices mean more dollar earnings, which can help reduce inflation and strengthen the local currency.
The rising prices of Nigeria’s crude oil grades are a boost for government revenue and economic stability. These gains are expected to support ongoing efforts to meet budget goals and improve foreign exchange reserves.
