By Precious Amadi
The surge in international crude oil prices above $100 per barrel could increase Nigeria’s government revenue while simultaneously putting further pressure on the cost of living, a lecturer in the Departments of Marketing and Petroleum Economics Ignatius Ajuru University of Education, Dr Joseph Obele, has warned.
Reacting to the development, Dr Obele said the rise in crude prices presented both an opportunity and a challenge for Nigeria, stressing that the Federal Government and stakeholders in the petroleum sector needed to prepare for its potential impact on consumers and businesses.
Brent crude reportedly settled at $101.21 per barrel, while West Texas Intermediate (WTI) settled at $96.05 per barrel on Wednesday, September 9, 2026.
The university don attributed the increase largely to heightened geopolitical tensions and concerns about possible disruptions to global oil supplies.
He said Nigeria could benefit from higher crude prices through increased government revenue if the country sustains or raises production and reduces crude theft, production losses and other leakages.
However, he warned that higher international oil prices could also increase the cost of petroleum products, particularly Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), potentially adding to the financial pressure on households and businesses.
According to him, higher petroleum prices could raise transportation costs, increase the cost of moving food and other goods, and push up business logistics and power-generation expenses.
He identified five major potential effects of the price surge: higher PMS and AGO prices, increased transportation costs, a rising cost of doing business, additional inflationary pressure and increased government revenue.
Dr Joseph therefore urged the Federal Government to balance the revenue opportunity presented by higher crude prices with measures to limit their potential impact on Nigerians.
He called for increased crude oil production alongside stronger efforts to tackle crude theft and production losses. He also advocated greater domestic refining capacity to reduce Nigeria’s exposure to fluctuations in international petroleum prices.
The lecturer further recommended that additional oil revenue be invested in critical infrastructure and productive sectors, while targeted relief could be provided to vulnerable households and businesses where necessary.
He also called for greater transparency in petroleum pricing, stronger strategic petroleum reserves and closer engagement among government, petroleum marketers and other downstream stakeholders in responding to price volatility.
Dr Joseph said the benefits of higher crude prices should extend beyond increased government revenue, arguing that oil earnings should translate into improved infrastructure, economic opportunities and better welfare for citizens.
He warned that the increase in crude revenue would offer little benefit if Nigerians continued to bear the burden of higher living and business costs without seeing corresponding improvements in their welfare.
