Crude oil prices have risen in the last two months, going from $74 to $91.72 per barrel between December 2021 and January 2022. Although there were a few dips in prices within the period, crude prices increased by 23.9% between the last month of 2021 and the first month of the year.
Nigeria depends largely on earnings from crude oil to run its economy and most of its foreign exchange earnings is also majorly earned from crude oil. Increase in crude prices means increase in revenue for the government.
At the moment crude price at $91.72 is higher than the benchmark oil price of $62 per barrel for 2022 as approved by the National assembly, increasing it from the president’s $57 per barrel proposed benchmark for the 2022 budget.
If crude prices maintain the current momentum and the country can increase its crude output from its current output of about 1.9 million barrels per day, it will provide a breather for Nigeria’s stretched finances.
oil price
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