Crude Oil Prices declined by 6.8% in April 2025
According to the monthly report from the Organisation of the Petroleum Exporting Countries (OPEC), the global crude oil prices experienced a decline of 6.8% month-on-month in April 2025. The report indicates that the value of the OPEC Reference Basket (ORB) decreased by $5.02, averaging $68.98 per barrel in April, a drop from the $74.00 per barrel recorded in March 2025.
The price of Nigeria’s Bonny Light also saw a reduction of 6.9%, falling from $73.59 per barrel in March to $68.48 per barrel in April. In a similar trend, the ICE Brent front-month contract fell by 7.0%, decreasing from $71.47 per barrel in March to $66.46 per barrel in April 2025. This decline in oil prices followed ongoing appeals from the President of the United States for reduced energy costs.
Given Nigeria’s dependence on oil revenue, the drop in Bonny Light prices is expected to diminish government earnings, exacerbate budget deficits, and impact planned public expenditures. Furthermore, reduced oil revenues could lead to a decrease in foreign exchange inflows, apply downward pressure on the Naira, and diminish the country’s external reserves.
To address these challenges, the government should enhance non-oil revenue by improving tax collection efficiency and expanding the tax base. Additionally, it should promote economic diversification by increasing investments in critical sectors such as agriculture, manufacturing, and the digital economy to lessen reliance on oil revenues. SOURCE: CSEA Africa
