Dr. Muda Yusuf, economist and CEO of the Centre for the Promotion of Private Enterprise (CPPE), has cautioned that the Nigerian federal budget for 2025, which is based on a crude oil price benchmark of $75 per barrel, may be unsustainable due to potential declines in global oil prices.
Analyzing the implications of U.S. President Donald Trump’s policies, Yusuf highlighted the likelihood of weakened oil prices in the near term, posing risks to Nigeria’s revenue and foreign exchange earnings.
He pointed to the United States’ dominant role in global oil production—accounting for 22% of total output in 2023—and Trump’s commitment to boosting production to lower energy prices. Yusuf also noted that the U.S. has the diplomatic influence to pressure OPEC into increasing output, which could further depress prices.
Additionally, he suggested that Trump’s potential efforts to de-escalate global geopolitical tensions, particularly the Russia-Ukraine war, could increase oil supply. If sanctions on Russia are lifted, global production would rise, intensifying downward pressure on prices.
With Trump’s recent Executive Order establishing a National Energy Dominance Council, Yusuf warned that these developments could undermine Nigeria’s budgetary projections.
“In light of these factors, the likelihood of oil prices weakening is high,” he said. “This raises concerns about the sustainability of Nigeria’s $75 per barrel benchmark for 2025 and its impact on government revenue and foreign exchange earnings.”
, has cautioned that the Nigerian federal budget for 2025,){kind=link}