As a result of Saudi Arabia’s announcement that it will continue its voluntary production cutbacks of a million barrels per day through the end of 2023, oil prices have risen to their highest level since 2014.

Additionally, Russia declared that it would prolong its 300,000 barrel per day export ban for the same time frame.

The action has increased the price of Brent crude, the global standard, to above $90 per barrel on Tuesday, up more than 12% from the year’s beginning.

The US benchmark, West Texas Intermediate, also increased to $87 per barrel, its highest level in seven years.

The surge in oil prices has implications for the global economy, as higher energy costs could fuel inflation and dampen consumer spending.

It also poses a challenge for Nigeria, Africa’s largest oil producer and exporter, which relies on oil revenues for about half of its budget and 90% of its foreign exchange earnings.

Nigeria has been struggling with the impact of fuel subsidy removal, leading to higher fuel prices surging by over 400%.

Higher crude oil prices could likely lead to higher fuel prices, piling more pressure on the government to assist millions of Nigerians who have seen their purchasing power dissipate.

Experts, however, argue that on the positive side, higher oil prices could boost Nigeria’s oil revenues and improve its fiscal position.

According to them, it could enable the government to increase its spending on infrastructure, health and education, which are crucial for economic growth and development and help reduce borrowing and debt servicing costs.