Oil boom to lift Nigeria’s revenue by N6.8trn in 2026

Nigeria could earn about N6.8 trillion more from oil in 2026 due to rising global crude oil prices.

This increase is linked to the ongoing conflict involving the United States and Iran, which has pushed oil prices higher.

This projection comes from BMI, which also raised Nigeria’s economic growth forecast for 2026.

According to the report, higher oil prices and ongoing reforms in Nigeria are expected to boost government revenue and improve the economy, even though inflation remains a concern.

Key Points from the Report

Oil prices are expected to average 78 dollars per barrel in 2026, up from an earlier estimate of 67 dollars.

This could bring Nigeria an extra N6.8 trillion, which is just over 1 percent of the country’s GDP.

Nigeria’s economic growth forecast has been slightly increased from 4.3 percent to 4.4 percent.

Impact of Oil Prices and Reforms

The report explains that recent reforms, especially the removal of fuel subsidy, are helping the government benefit more from high oil prices. Since fuel prices are now linked to global market rates, the government earns more when oil prices rise.

However, this has also caused fuel prices in Nigeria to increase by over 50 percent, which affects the cost of living.

A stronger naira is helping to reduce the impact of imported inflation, and the report suggests that the current inflation pressures may be temporary.

Broader Context

The Nigerian Economic Summit Group had earlier said Nigeria could earn even more—up to N30.2 trillion—if the Middle East conflict continues for a long time.

The conflict has already disrupted global energy markets, leading to higher oil prices worldwide. Although Nigeria is affected, it is seen as less vulnerable compared to some other African countries.