Following U.S. attacks on Iranian nuclear facilities, global oil markets have surged, offering Nigeria a fiscal advantage amid growing geopolitical tension.
Following U.S. attacks on Iranian nuclear facilities, global oil markets have surged, offering Nigeria a fiscal advantage amid growing geopolitical tension. Brent crude rose over 20% in the past month, trading above $78 per barrel, while JP Morgan projected a worst-case $130 per barrel scenario. Goldman Sachs’ Daan Struyven adjusted his short-term Brent target to $90, citing potential disruption of 1.75 million bpd from Iran.
Nigeria, which budgeted oil revenue at $75 per barrel, stands to benefit from the rally. “The country is already leveraging the oil prices rally for a firmer fiscal position,” analysts noted. The Central Bank’s grip on the naira has strengthened, with FX reserves at multi-year highs.
President Trump hailed the strikes as a “spectacular military success,” yet risks remain. Experts warn of capital flight and inflation concerns, though Nigeria’s improved reforms and sovereign ratings may cushion the effects, boosting investor confidence and stabilizing currency performance.