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Nigeria’s Budget At Risk As Crude Oil Dips Below $60

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The price of Bonny Light, Nigeria’s premium crude grade, fell by 5.09 percent to $59.62 per barrel on Wednesday, raising fresh concerns over the viability of the nation’s 2025 budget.

The decline comes amid renewed global economic tensions triggered by a new round of tariff hikes from the United States earlier this week.

Compounding the situation is the recent decision by the Organisation of Petroleum Exporting Countries (OPEC) and its allies to raise oil production by 411,000 barrels per day (bpd) starting in May 2025.

READ ALSO: JUST IN: FEC Moves For Total, Continual Naira-For-Crude Deal

Experts warn that the dual pressure of weak prices and lower-than-expected output could jeopardize the N54.99 trillion budget, which is benchmarked on an oil price of $75 per barrel and daily production of 2.06 million bpd.

However, data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows actual output, including condensates, stood at 1.67 million bpd in February.

“This is a serious problem as we have just completed the first quarter of the year. We have three more quarters to go, meaning that we have serious issues in our hands, if the situation persists,” said Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE).

“It poses a very serious challenge to our economic management team. First, it poses a risk to our revenue. Second, it poses a risk to our exchange rate.

“Our economy is dependent on foreign exchange earnings. The low oil price would put pressure on foreign exchange earnings. We all know the implications on a weak exchange rate on the economy,” he added.

Meanwhile, the falling price of crude oil may lead to a reduction in the cost of petroleum products in the domestic market.

“Industry findings suggest that major players in the downstream sector could announce lower pump prices for Premium Motor Spirit (PMS) in the coming days.

“This should be expected in a deregulated market. If the fall in crude oil prices persists for a while, it would impact developments in the value chain,” said Ehimen Joseph, Chairman of the Lagos State chapter of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).

Another industry operator, who declined to be named, confirmed signs of an impending price adjustment.

“Everything is pointing towards pump price reduction this week. One of the nation’s refineries has stopped printing its petrol tickets. There are claims there would be a petrol price review before Tuesday.

“All those who paid for the program are likely to get a discount on the new price, and then tickets will be issued. This is a reflection of the general fall in the prices of crude oil in the international market,” the operator said.

Depot prices are already showing a downward trend.

According to petroleumprice.ng, rates at Mainland, A.Y.M., and Ever have dropped to N918, N919, and N918 per litre respectively.

Similarly, Prudent now sells at N912 per litre, Eterna at N897, and Soroman at N915.

In a statement released after a virtual meeting on April 3, OPEC said: “The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, met virtually on 3 April 2025, to review global market conditions and outlook.”

 

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NNPC Foundation Wins CSR Champion Award (Health)

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The NNPC Foundation Limited/Gte, the Corporate Social Responsibility (CSR) arm of the Nigerian National Petroleum Company Limited (NNPC Ltd), has won the CSR Champion Award (Health) 2025 instituted by the Independent Newspapers.

Biztellers reports that the award was presented during the Silver Jubilee edition of the Independent Newspapers Awards, themed “Game Changers: Breaking Barriers and Shaping Tomorrow,” held at Eko Hotel and Suites on Saturday, 18 April 2026.

The CSR Champion Award (Health) recognises the Foundation’s work in healthcare and its broader commitment to improving lives through social investment programmes spanning health, education, environment, and access to energy.Primary & Secondary Schooling (K-12)

The recognition follows a series of health initiatives delivered by the Foundation, including free cataract screening and surgeries that restored sight to over 6,000 Nigerians, including minors born blind; cancer and glaucoma interventions; medical outreaches to underserved communities; renovation and furnishing of three wards with 100 beds at the National Orthopaedic Hospital, Igbobi; partnership and sponsorship of heart surgeries; and provision of dental health accessories to children in special schools, among others.

The NNPC Foundation noted that these results were made possible through the leadership and support of the NNPC Ltd. Management team, whose commitment has continued to strengthen the Foundation’s capacity to deliver social investments across the country.

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Reacting to the award, the Managing Director of NNPC Foundation, Emmanuella Arukwe, described the recognition as a validation of the Foundation’s work and the trust placed in it by Nigerians. She noted that the award means so much to the company because it represents the confidence Nigerians have placed in its work and the value they see in purposeful social investment.

“It speaks to the resilience of the communities we serve, the dedication of our team, and the strength of partnerships that have enabled us to do meaningful work in health, education, environmental sustainability and access to energy,” she added.

In addition, Arukwe noted that “these results have also been made possible through the leadership and support of the NNPC Ltd. Management team, whose backing has been instrumental to the success of the Foundation’s work. We receive this award with gratitude, and with a renewed sense of responsibility to do more and reach further across the country.”

The NNPC Foundation Limited/Gte remains committed to advancing health interventions that improve outcomes and contribute to national development.

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NNPC Ltd, Algeria’s Sonatrach Ink MoU for Research, Innovation

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The Nigerian National Petroleum Company Limited (NNPC Ltd), through its Research, Technology and Innovation (RTI) Division, in collaboration with the Petroleum Technology Development Fund (PTDF), has signed a Memorandum of Understanding (MoU) with Sonatrach, the Algerian National Oil Company, for cooperation in research, development, and innovation.

The agreement, signed by NNPC Ltd’s Executive Vice President, Business Services, Sophia Mbakwe, and Sonatrach’s Managing Director, Khodjah Mohamed, establishes a formal framework for joint work in research and technology exchange between the two national oil companies.

This was contained in the press statement issued on Thursday by Chief Corporate Communications Officer Mr. Andy Odeh.

According to the statement, the agreement, held during the opening ceremony of the 3rd Meeting of the African Petroleum Producers’ Organization (APPO) Forum for R&D Directors at the PTDF Tower in Abuja, Nigeria, brought together research and development directors from APPO member countries.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, represented by former Secretary General of APPO, Omar Farouk Ibrahim, said the forum was one of four measures introduced by APPO to address challenges from the global energy transition, which center on funding, technology, and markets.

“The R&D forum tackles technology and expertise needs, the African Energy Bank addresses funding constraints, and the Central African Pipeline System supports regional oil and gas market integration,” Lokpobiri stated.

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Earlier in his remarks, Group Chief Executive Officer, NNPC Limited, Engr. Bashir Bayo Ojulari, represented by the Company’s Chief Financial Officer, Adedapo Segun, said research and development must form a central part of the overall strategy in the African oil and gas industry.

He called for research and development centres to function as engines of industrial competitiveness. “Collaboration in research and development is of strategic importance. The cost of innovation might be high, but the cost of obsolescence would be greater,” he stressed.

Ojulari called for a unified strategic framework through which resources could be pooled, data integrated, and risks shared across member countries.

He further urged the rapid adoption of digital technologies, artificial intelligence, and advanced engineering to improve upstream, midstream, and downstream operations.

On his part, the APPO Secretary General, Farid Ghezali, urged African petroleum-producing countries to ensure research in the oil and gas sector produced solutions that are practical and directly relevant to the continent. “We must ensure that our research delivers solutions that are practical and of direct use to Africa,” he stated.

Also speaking, the Executive Secretary of the Petroleum Technology Development Fund (PTDF), Prof. Shu’aibu Shehu Aliyu, highlighted the value of the partnership between NNPC Limited and PTDF in supporting decarbonization and environmental protection efforts across APPO member countries.

Chief Innovation Officer of NNPC Research, Technology and Innovation and incoming Chairman of the APPO R&D Directors Forum, Rasheed Ojulari, said the forum would give immediate priority to joint programs in the core areas of upstream optimization, artificial intelligence, decarbonisation processes, and industrial systems development.

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NGA Calls for Risk Reduction Policies to Lift Oil, Gas Industry

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The Nigerian Gas Association (NGA), has opined that a predictable fiscal and regulatory environment are ingredients essential to de-risking investments and accelerating project delivery in the oil and gas sector.

This was detailed in a statement released by NGA at the end of its maiden Legal Forum emphasised that investor confidence will be shaped by the robustness of commercial and contractual structures across the gas value chain, strengthened contractual clarity, and efficient dispute resolution mechanisms.

In his opening address, President of the NGA, Aka Nwokedi, underscored the urgency of aligning Nigeria’s legal architecture with its strategic gas ambitions, noting that the sector’s next phase of growth will be defined by the strength, clarity, and credibility of its regulatory environment.

“Nigeria’s gas resources present a defining opportunity for economic transformation, but realising this potential will depend on building a legal framework that is transparent, predictable, and globally competitive”, he stated.

Discussions throughout the Forum reflected a clear and consistent theme: that Nigeria’s opportunity now lies in execution.

ALSO READ: IEA: Nigeria Has Only 1.42m bpd Production Capacity, Zero Spare Output

While the Petroleum Industry Act (PIA) has established a transformative foundation for sector reform, participants emphasised that its true impact will be determined by disciplined implementation, regulatory coherence, and institutional alignment.

The need to eliminate ambiguity and strengthen enforcement emerged as central to unlocking sustained investment.

As global energy systems continue to evolve, the Forum reinforced natural gas as Nigeria’s most strategic lever for balancing economic growth, energy security, and emissions reduction. Participants highlighted that legal and regulatory frameworks must evolve accordingly, moving beyond policy intent to embed clear, enforceable standards on carbon management, ESG obligations, and sustainability.

“In an increasingly competitive global market, such clarity will be critical in attracting long-term capital.”

The Forum also acknowledged the policy direction of the administration of President Bola Ahmed Tinubu in advancing gas development through infrastructure expansion and increased domestic utilisation.

Stakeholders noted that sustained policy stability will serve as a critical signal to both domestic and international investors evaluating long-term opportunities in Nigeria’s gas sector.

Beyond its technical depth, the NGA Legal Forum marked an important step in bridging the longstanding gap between legal frameworks and industry realities, creating a structured platform for continuous engagement, practical alignment, and forward-looking policy development.

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