Nigeria to Benefit from Higher Oil Prices Amid Global Supply Disruptions

Nigeria is poised to benefit from the recent surge in international crude oil prices, which have risen above the country's 2026 budget benchmark of $64.85 per barrel.

The Brent crude price climbed to $94.39 per barrel on August 21, driven by concerns over potential supply disruptions linked to the ongoing conflict between the United States and Iran, as well as reduced oil flows through the Strait of Hormuz.

With Brent currently about $29.54 per barrel above Nigeria's budget benchmark, the country has a potentially significant opportunity to improve its oil-sector earnings.

The potential benefit from higher prices depends on Nigeria's ability to sustain and increase crude production, which declined by 4% in July due to operational challenges at the Erha and Akpo fields.