Abuja: A renowned economist, Dr. Chijioke Ekechukwu, has highlighted that Nigeria is losing out on significant economic benefits from the current surge in global crude oil prices due to its low production capacity. Ekechukwu, who serves as the Group Managing Director/Chief Executive Officer of Bristol Investment Limited, discussed the country’s missed opportunity in an interview with the News Agency of Nigeria (NAN).
According to News Agency of Nigeria, Ekechukwu pointed out that Nigeria could have achieved a substantial economic gain if its crude oil production was operating at full capacity or met its Organisation of the Petroleum Exporting Countries (OPEC) quota. He explained that the country’s current production levels are far below its potential, thus limiting the benefits it could gain from soaring global crude prices caused by tensions involving the United States and Iran.
OPEC had set Nigeria’s crude oil production quota at 1.5 million barrels per day (mbpd). However, the country’s output fell to 1.31 million barrels per day (bpd) in February, as per OPEC data. With crude oil prices significantly surpassing Nigeria’s 2026 budget benchmark of 64.9 dollars per barrel, the fiscal deficit for the year could have been eliminated if production was at optimal levels.
Ekechukwu cautioned that despite the potential increase in government revenue due to higher crude prices, the average Nigerian is already feeling the strain of rising petroleum product costs. The surge in fuel prices has led to increased diesel costs, transportation fares, and production expenses across various sectors.
He emphasized that the rising energy costs are driving up prices of goods and services, exacerbating the cost of living pressures on citizens. Nigerians are facing high fuel costs, escalating diesel prices, rising transportation costs, and increased production expenses, leading to a rapid decline in the purchasing power of the average citizen.
The economist further noted that while Nigeria’s treasury would see some revenue boost from high crude prices, the gains would be considerably lower than what could have been realized if crude oil production were at optimal levels.