Global oil prices slid further on Tuesday, August 19, 2025, deepening concerns over Nigeria’s fragile fiscal framework for the year.
Market data from oilprice.com showed Brent crude down by 1.01 per cent or 67 cents to trade at 65 dollars 93 cents per barrel. West Texas Intermediate (WTI) fell by 1.23 per cent or 78 cents to settle at 62 dollars 64 cents per barrel on Tuesday afternoon.
The decline was triggered by renewed optimism that talks between the United States, Russia and Ukraine could pave the way for easing sanctions on Russian crude, unlocking more supply into the global market.
For Nigeria, the slide is particularly troubling. The Federal Government’s 2025 budget is benchmarked at 75 dollars per barrel, but Brent has consistently traded below that threshold in recent weeks. Analysts warn that sustained weakness will widen the deficit and force higher borrowing.
Production has averaged about 1.5 million barrels per day this year, still below the official target of 1.78 million barrels per day in the budget. Although output shows improvement compared to last year, the shortfall coupled with falling prices threatens fiscal stability.
Economists say Nigeria may face mounting debt obligations unless urgent steps are taken to diversify revenue and reduce reliance on oil receipts.
