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Tough times ahead for Nigerian states as oil price nears $90

Oil prices continued their surge on Wednesday, trading at a level never seen under the administration of President Muhammdu Buhari, IgbereTV reports.

Reports showed that on Wednesday, Brent, the benchmark for Nigerian oil, closed at $88.29, the highest level in seven years.

The rising oil price was attributed to rising tension in Middle east countries and there are projections it could hit $90 and $100 in coming days.

The projection is based on the fact that agitators at the middle east are not willing to stop after hiting pipeline linking Iraq and Turkey.

The dual face relationship between international oil price Nigeria economy could mean big problems ahead.

On the face value the rise in oil price should mean more revenue, but with Nigeria producing below capacity and heavy reliance on petrol importation it means more money is set to go into subsidy payment.

Data from Organisation of Petroleum Exporting Countries (OPEC) product latest report showed Nigeria again missed out on huge oil revenue as its oil production declined by 78,000 barrels per day (bpd) last December 2021.

While other major oil producers increased their production and agitating to pump more, Nigeria’s December 1.19 million barrels per day production was at per with Angola.

OPEC uses secondary sources to monitor its oil output, but also publishes a table of figures submitted by its member countries

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