The Federal Government on Tuesday expressed fears that United States President Donald Trump’s tariff policies marked by inconsistency and volatility, causing significant disruptions in global trade and financial markets, may negatively impact Nigeria’s revenue projections in the 2025 budget.
Chief Executive Officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), Engineer Farouk Ahmed disclosed this while briefing State House Correspondents at the presidential villa, Abuja.
“If the price of crude oil in the international market remains down, it will obviously affect our budget. But, that is for the Minister of Finance to address,” Engineer Farouk stressed.
Nigeria’s revenue projection for 2025 is set at ₦36.35 trillion, a significant increase from previous years. The revenue target is based on a crude oil production target of 2.062 million barrels per day and an oil benchmark price of $75 per barrel.
President Bola Tinubu signed the 2025 budget in February with a significant component of the fiscal strategy involving tax reforms, which he said are designed to enhance revenue generation and economic stability.
According to the NMDPRA chief executive “What is even destabilizing the market is the inconsistencies in the way President Trump also senses the policies.
“He moves today, the next day, he changes. It’s been very difficult to predict what the next level would be. For investors, and traders, in not just the oil and gas industry, but the general economies of the world.
“So, the crude oil and petrol industry continues to have a downward trajectory because of this inconsistency and policies of the government of the United States.
“The key aspect of it is the aspirations of the American President to ensure that the crude oil price comes down to maybe, below $50 per barrel. That is why he encourages more exploration in his country.
“If you look at it globally as a nation, it is not good for our economy, because our revenue infow is also impacted.
“If the product price like what happened previously dropped in one day from about $73 per barrel to $60 per barrel, you can see that in terms of our production of crude oil, our revenue is impacted severely.
“So, if you look at the revenue inflow into the country, we are confronted with the issues of vandalism, illegal hunkering, and low production,” Engineer Farouk added.
According to the latest report by the Organization of Petroleum Countries (OPEC), Nigeria’s crude oil production in March 2025 stood at 1.40 million barrels per day (bpd), marking a decrease from 1.46 million bpd in February.
NewsQuest reports that despite this level of decline, Nigeria remains the largest crude oil producer in Africa, surpassing Algeria and Congo.
