Abuja, April 16, 2025 – Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), says the sliding prices of crude oil will adversely affect the Nigerian economy.
Ahmed said this in Abuja on Tuesday while speaking during the “Meet-the-Press” programme of the Presidential Communications Team.
He said while the sliding prices would benefit average Nigerians, the federal government’s revenue would be negatively affected.
“As consumers, we are happy that the price is coming down, but as a nation, it’s not good for our economy because our revenue inflow is also impacted,” he said.
Ahmed described the recent sharp drop in crude oil price from $73 to $60 per barrel as disruptive and will affect revenue inflows to government.
He blamed the gloomy global economic situation on the erratic and inconsistent manner the US President had been handling his economic policies since he assumed office.
“What is even destabilising the market is inconsistencies in the way the USA President Donald Trump also sends his policies. He moves today. Tomorrow, he reverses. So, it’s been challenging to predict the next level.
“Recently, as we all know, the global oil market – not only the oil market but the global economy – has been a bit volatile in the sense of the new American government’s policy of tariffs, not only targeted at China, but at the whole world.
“Investors and traders not only in the oil and gas industry, but also in the general economies of the world are moving left and right to the extent that some are doing day trading.
“That means you do your trading today. You close by the end of today because you never know what tomorrow’s policy will drive the market into.
“So, the crude oil and petrol products market continues to have a downward trajectory because of these inconsistencies and policies of the government of the United States, and the key aspect of it is the aspiration of the American president to ensure that the crude oil pricing, or the crude oil price, comes down to maybe below $50 a barrel; that’s why he encourages more exploration in his country,” he said.
The NDMBRA boss said the current price instability in the oil market would compound the age-old domestic challenges of pipeline vandalism and reduced production to further frustrate efforts of the federal government.
