As tension between Russia and Ukraine continues to peak, Nigeria is to profit from crude sales as the price of the commodity skyrocket to nearly $100 per barrel.
The commodity’s price is now higher than Nigeria’s benchmark for the 2022 budget pecked at $62/barrel.
Oil prices skyrocket at an alarming rate after Russia’s President Vladimir Putin ordered his troops into the two breakaway regions of Donetsk and Luhansk in eastern Ukraine.
Crude rose to 3.82%, to $99.03 a barrel in the early hours on Tuesday when tension escalate between the two nations.
Russian President Vladimir Putin had on Monday signed decrees recognising the independence of the Moscow-backed regions, a development that fueled fears of supply shocks in the oil sector.
The rise in global crude oil prices should portend an upturn for Nigeria’s revenue, reports TheCable.
Reports say the payments for price shortfall may take up N2.6 trillion this year.