The Nigerian Economic Summit Group (NESG) has issued a strong warning to the federal government, highlighting that the ongoing slowdown in Nigeria’s oil and gas sector could severely hamper the effective implementation of the 2025 national budget.
In its latest publication, “NESG 2025Q1 GDP Alert,” the private sector-led think tank pointed out that Nigeria’s crude oil output in the first quarter of 2025 was well below the government’s benchmark projection of 2.06 million barrels per day (mbpd).
“Persistent slowdown in the oil and gas sector poses a threat to the execution of the 2025 budget,” the report said. “In 2025Q1, the average crude oil production is significantly below the budget benchmark of 2.06mbpd, translating to lost oil revenues needed to implement the budget.”
NESG stressed that this production shortfall directly reduces expected government revenue, undermining the country’s ability to fund key infrastructure, social services, and developmental programmes.
The report called for immediate government intervention to resolve pressing issues within the oil and gas industry, including ageing infrastructure, oil theft, pipeline vandalism, and the kidnapping of expatriate workers.
It urged a comprehensive overhaul of Nigeria’s economic revitalisation framework to prevent further revenue losses and to secure the success of the 2025 fiscal plan.
