Nigeria’s revenue from crude oil is set for a significant boost as its key crude grades traded at $113 per barrel on Thursday, far above the international benchmark, Brent crude oil, which stood at $96.54 per barrel.
Market data as of 9:54 AM WAT showed that Nigerian crude grades, Brass River and Qua Iboe, sold at $113.82 and $113.72 per barrel respectively, reflecting strong demand for Nigerian oil in the global market.
The price surge comes amid rising geopolitical tensions in the Middle East, which have disrupted global energy flows and increased interest in alternative crude suppliers, including Nigeria.
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said on the sidelines of the International Monetary Fund and World Bank Spring Meetings in Washington that the country’s crude oil production has risen to 1.8 million barrels per day.
Edun noted that the increase in output would strengthen government revenue, improve foreign exchange inflows, and provide greater fiscal stability.
“It gives us that extra fiscal space within which to look at … helping the vulnerable households at this time,” he said.
The Federal Government has set its 2026 oil benchmark at $60 per barrel, meaning current market prices are significantly above budget assumptions, potentially widening fiscal space if production remains stable.
The U.S. dollar remained near its lowest level since early March, with the US Dollar Index steady at 97.969, as traders reacted to easing safe-haven demand linked to geopolitical developments.
Meanwhile, the Nigerian naira showed slight strength in the official market, opening at approximately ₦1,344.20 per dollar, supported by improved foreign exchange inflows and ongoing interventions by the Central Bank of Nigeria.
Analysts say Nigeria’s improved oil output—now rising from about 1.38 million to 1.8 million barrels per day—combined with strong crude prices, could significantly enhance government earnings in 2026.
However, the country continues to face structural challenges, including pipeline disruptions, oil theft, and difficulties consistently meeting OPEC production quotas.
Key production terminals such as Forcados, Bonny, Qua Iboe, and Escravos remain central to Nigeria’s crude output capacity.
The global oil rally has been further strengthened by disruptions linked to the conflict involving the United States, Israel, and Iran, which has affected shipping through the Strait of Hormuz—through which a significant share of global oil trade flows.
The resulting supply uncertainty has increased demand for alternative crude grades, with Nigerian oil benefiting from redirected cargo flows to new international buyers.
Nigeria’s crude oil revenue in 2025 was estimated at ₦55.5 trillion, driven by production of over 530 million barrels, and analysts say higher prices in 2026 could further improve fiscal performance if output is sustained.
