Better times are here for the Nigerian government as Brent Crude, Nigeria’s crude oil benchmark, hit $84.50 per barrel on Monday afternoon, according to data from the Nigerian National Petroleum Corporation (NNPC).
The product gained $2.11 per barrel to rise at 2.56%.
The rise follows ballooning demand for crude oil as more countries reopen for economic activities after a lull created by the COVID-19 pandemic.
The surge also sprang from a rise in demand for energy that resulted from rebound activities in the face of the refusal of the Organization of Petroleum Exporting Countries (OPEC) to increase supply.
Reuters reported that oil prices rose more than 2% on Monday, extending gains as an energy crisis gripping major economies shows no sign of easing amid a pick up in economic activity and restrained supplies from major producers.
Brent Crude was up $1.70, or 2.1%, at $84.09 a barrel by 1100 GMT, its highest since October 2018.
US West Texas Intermediate (WTI) crude rose $2.08, or 2.6%, to $81.43 for its highest since late 2014.
Oil prices are likely to continue climbing in the short term,” said Commerzbank analyst Carsten Fritsch.
The development, experts note means more revenue for the Nigerian government, especially as the 2022 budget is benchmarked on $57/barrel.