Oil Rally Pushes Nigeria’s Revenue Above Budget Estimate

The upturn in the price of the international oil benchmark, Brent crude, has pushed Nigeria’s oil revenue above the estimate in the 2021 budget.

Brent, against which the country’s crude oil is priced, has been trading more than $20 higher than the Federal Government’s benchmark for this year’s budget in recent months.

The 2021 budget, which was signed by President Muhammadu Buhari, on December 31, was based on an oil price benchmark of $40 per barrel and a production level of 1.86 million barrels per day.

According to the budget, 30 per cent (N2.01tn) of projected revenues is to come from oil-related sources while 70 per cent is to be earned from non-oil sources.

For Nigeria, which relies on crude oil for about 50 per cent of government revenues and over 90 per cent of export earnings, rising oil price means increased revenue.

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