Lagos — According to the Organisation of Petroleum Exporting Countries’ (OPEC) monthly report released in July 2025, the OPEC Reference Basket (ORB) value increased significantly by $6.11 (9.60%), rising from $63.62 per barrel in May 2025 to $69.73 per barrel in June 2025.
Similarly, ICE Brent rose by $5.79 month-on-month, from $64.01 in May 2025 to $69.80 in June 2025, while the Nigerian Bonny Light increased by 11.1% ($7.18), climbing to $71.73 in June 2025 from $64.55 in May 2025.
The surge in global crude oil prices is attributed to growing disruptions in oil-exporting regions, as escalating tensions in the Middle East have likely heightened market volatility, contributing to the price increase.
A rise in crude oil prices typically translates into higher oil revenue earnings for Nigeria, boosting the country’s foreign exchange inflows and strengthening its foreign exchange reserves.
However, Nigeria’s heavy dependence on crude oil revenues is unreliable, evident from the country’s experience with crude oil price volatility and its attendant consequences on the economy.
The government should implement targeted reforms to stimulate the production and export of non-oil sector goods, which would, in turn, enhance the country’s non-oil revenue.
Apart from this, the government should channel excess oil revenues into a stability fund to cushion the economy against potential shocks from future price declines.
Efforts should be intensified to promote domestic refining of Nigeria’s crude oil and to enhance non-oil revenue generation through improved tax compliance and administrative reforms.
This article was originally posted at sweetcrudereports.com
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