Oil & Gas

Nigeria’s crude oil grades have surged to an average of $90 per barrel as global oil prices climbed above $91 on Friday, boosting the country’s daily oil earnings to about $134 million, or N186.3 billion. The increase places Nigeria roughly $36.4 million above the $65 per barrel benchmark used in the 2026 national budget, providing short-term fiscal relief for Africa’s largest oil producer.

The price rally has been largely driven by escalating tensions in the Middle East and disruptions to tanker movements through the Strait of Hormuz, one of the world’s most critical energy shipping routes. Vessel traffic through the strait reportedly plunged from an average of 138 ships per day to just two, sparking fears of a prolonged supply shock. Brent crude traded around $92 per barrel, with some Middle Eastern benchmark grades nearing $100.

Energy officials have warned that the situation could worsen if the disruption continues. Qatar’s Energy Minister, Saad al-Kaabi, said further supply constraints could push oil prices beyond $150 per barrel in the coming weeks. The International Monetary Fund (IMF) also cautioned that a sustained rise in global energy prices could slow economic growth and increase inflation worldwide.

Despite the revenue boost, the surge in oil prices could intensify domestic inflation in Nigeria as higher global prices push up fuel costs. Petrol prices in parts of the country are already nearing N1,000 per litre, even as domestic refining operations expand. Analysts say tightening global supply, export restrictions in parts of Asia, and operational shutdowns at key refineries could keep pressure on energy markets in the near term.