Africa’s biggest oil exporter and African Petroleum Producers Organization (APPO) Member Country, Nigeria, has been recording an impressive rise in the price of its crude oil over the past few days.

Nigeria is one of the African countries whose yearly budgets hugely depend on revenues from the sales of crude oil; however, the COVID-19 pandemic has forced the “African giant” to cut down its budget and reduce its expectations. The country’s projection for the sale of crude oil for 2020 was at $65 per barrel, but the global decline in oil prices due to very low demand has left a negative impact on the country’s projection.

The gradual rise is credited to the OPEC+ agreement for countries to cut crude production that went into effect on the 1^st of May, which Nigeria has adhered to. Gradual easing of lockdown in China, the country’s biggest buyer, and gradual easing of restrictions in other countries, thereby opening the global economy, is another obvious reason for the gradual rise.

The table below shows the prices of Nigerian crude oil towards the end of April (when the OPEC deal was not implemented).

The table below shows the prices of crude from 15^th of May till date:

On the 27^th of April 2020, Nigeria’s crude was sold for $9.75 but as at today, 27^th May 2020, crude is being sold for $33.69. 

Algeria is another APPO-member country that has been showing impressive recovery signs. The North-African country, which has already been forced to slash its budget twice this year to adjust to falling oil prices, has reportedly been showing good recovery signs in the past few weeks.

Data Source: Central Bank of Nigeria