THE price of Nigeria’s Bonny Light crude oil fell by 10.6 per cent to $73.53 per barrel from $84.02 per barrel on January 15th, fuelling fears over achievement of the Federal Government’s budget 2025 revenue target.

The Budget 2025 is based on a crude oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day (bpd), and a revenue target of N36.35 trillion, with 56 percent coming from oil sales.


The fall in crude oil price represents a 6.6 per cent potential decline in FG’s oil revenue target, which is worsened by the oil output well below the budget benchmark of 2.06 million barrels per day.

According to data from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, crude oil output stood at 1.737 million bpd in January 2025, up from 1.667 million bpd recorded in the preceding month of December 2024.

Reacting to the development, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, CPPE, Dr Muda Yusuf, said, “If energy prices fall, of course, that has implications for our revenue. So it’s likely to negatively impact on our oil price, on our oil revenue but it may be positive for businesses because a reduction in crude oil price or commodity or global oil price typically reduces the cost of petroleum products, including the Premium Motor Spirit, PMS, also known as petrol, diesel and jet fuel.

On his part, the National President of Oil and Gas Services Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said: “Besides impacting negatively on the execution of Nigeria’s 2025 budget, it should be noted that low crude oil price would culminate in low petroleum products prices. This would be possible as refiners’ costs of refining are expected to drop.”

Gbadugbakun:
Does this mean that fuel prices would drop?

Rossychy:
Should we cry that the price of oil reduced? I am not understanding

Gbadugbakun:
Does this mean that fuel prices would drop?

Deltafirstson:
Although the pump price of fuel was N197 when President Bola Tinubu took over on May 29, 2023, the product now sells for N617 per litre – less than two months after.

In his inaugural address, Tinubu announced that subsidy was gone, fulfilling a promise that all leading presidential candidates made during the campaign.

However, pump price of fuel hit N537 per litre days after Tinubu ended subsidy.

On Tuesday, the price climbed further to N617, a development that the Nigerian National Petroleum Corporation Limited (NNPCL) attributed to “market forces”.

Nigerians have been lamenting the hardship occasioned by fuel price hike. Amid the lamentation, a video where Tinubu campaigned to slash the price of fuel went into circulation.

Checks by Daily Trust affirmed the authenticity of the video uploaded on the YouTube page of Channels Television.

At his campaign rally in Abeokuta, Ogun State capital, on January 25, 2023, Tinubu spoke on a number of issues, but those of fuel scarcity and naira redesign made the headlines.

However, Tinubu who spoke in Yoruba language, also assured the crowd that though people were saying petrol price would hit N200, it would be reviewed downward under him.

“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200 per litre. Go and relax, we will bring it down,” he had said in the 7th minute of the video.

King Wasiu Ayinde Marshall, a Fuji musician who performed at the rally, interrupted the president’s speech with chants as the crowd cheered.

On the campaign podium with the president were Vice-President Kashim Shettima; Pa Bisi Akande, interim National Chairman of the APC; Femi Gbajabiamila, Chief of Staff to the President; Senator Gbenga Daniel; among other bigwigs of the ruling party.

Tinubu went further to say Nigerians would defy the acute fuel scarcity at the time and trek to cast their votes.

“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200/N500 per litre. Go and relax, we will crash the prices,” he had said.

https://dailytrust.com/breaking-video-of-tinubu-campaigning-to-crash-fuel-

he had said in the 7th minute of the video.

https://www.youtube.com/watch?v=4JH8CC_JdUA

Osiris12:
Anything to bring down the cost of petrol is all we want

anthonykezy:
Oil slump: Bring down fuel price immediately, Fashola tells FG ON DECEMBER 7, 2014

Lagos—As the global oil prices slid further downward, Governor Babatunde Fashola of Lagos State, yesterday, asked the Federal Government to review downward the pump prices of Premium Motor Spirit, PMS,  from N97 per litre in the country in tandem with the slump in world oil price. President Jonathan and Gov Babatubde Fashola of Lagos The Organisation of Petroleum Exporting Countries, OPEC, had last Friday, on its website pegged the oil price at $66.27 per barrel. Fashola who blasted FG for its reluctance to adjust the pump price of   PMS, made the remarks while addressing hundreds of youths at the  Lagos State and After School  Graduation Development Centre,  AGDC, IGNITE Employability Project 5, Ikeja. He lamented that Nigerians were not receiving fair treatment from the central government like others in oil producing nation.

Fashola said, “Now we should be enjoying cheap fuel if the price of oil has dropped globally. Even as we import the product, a major component has reduced in price and while this has reduced, the pump price of fuel in the country still remains the same. “Then something is wrong. If the price increases in the country when the price of oil goes up globally, then it should also reduce when the price of oil drops. “I understand that I am not an economist; they (Federal Government) are the economists. But I have some logic and common sense to ask critical questions. For instance, if one buy flour at N10 per kilogram, and the bread was sold at N1 per loaf. If the price of flour drops, the price of the bread should also change,” Fashola added. The governor, therefore, urged President Goodluck Jonathan led administration to follow the footstep of other countries that have reduced the pump price of oil products for their citizens.

Source: http://www.vanguardngr.com/2014/12/oil-slump-bring-fuel-price-immediately-fashola-tells-fg-2/

iwaeda:


https://www.vanguardngr.com/2025/03/oil-price-decline-to-73-5-per-barrel-threatens-budget-2025-revenue-target/