Uncertainty in global oil price threatens 2025 budget — CPPE

By Seun Ibiyemi

The Centre for the Promotion of Private Enterprise (CPPE) has said that Nigeria’s 2025 budget faces uncertainty as global oil price fluctuations threaten revenue projections.

The budget, anchored on a $75 per barrel oil price benchmark, may be difficult to sustain due to the impact of U.S. President Donald Trump’s energy policies, which prioritise increased oil production and lower global prices.

This was said in a statement made available to NewsDirect by the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf warns that Trump’s policies, including boosting U.S. oil output and influencing OPEC to raise production, could drive down oil prices.

He said his commitment to resolving the Russia-Ukraine war could ease global supply disruptions, further depressing crude prices.

With crude oil revenue being Nigeria’s main source of government funding, a significant drop in prices would lead to revenue shortfalls, widening the fiscal deficit.

Yusuf said, “This could impact key government expenditures, including infrastructure projects, social programs, and debt servicing. A weaker oil market could also reduce foreign exchange earnings, potentially leading to currency depreciation and inflationary pressures.

“To mitigate these risks, experts urge the Nigerian government to explore alternative revenue streams, strengthen local production, and enhance economic resilience. With global economic dynamics shifting, there is a growing need for Nigeria to reduce its heavy reliance on oil revenue to ensure fiscal stability,” he said.