Oil Prices Decline by 20%: To Affect Africa’s Oil Producing Countries

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In Nigeria, the continent’s largest oil producer, the impact is immediate: the budget deficit widens, slowing infrastructure projects and social programs. In Angola, the government is urgently revising its budget, freezing some development projects. Meanwhile, Gabon sees its oil revenues shrink, slowing public investments and forcing a re-evaluation of economic priorities.

A new storm is shaking global markets. In April 2025, the price of crude oil dropped by more than 20%, reaching its lowest level in four years. The causes include ongoing trade tensions, exacerbated by the Trump administration’s tariff policies.

Brent oil has fallen below the critical threshold of USD 70 per barrel, threatening the budget balance of several African oil-producing countries.  In Nigeria, the continent’s largest oil producer, the impact is immediate: the budget deficit widens, slowing infrastructure projects and social programs. In Angola, the government is urgently revising its budget, freezing some development projects. Meanwhile, Gabon sees its oil revenues shrink, slowing public investments and forcing a re-evaluation of economic priorities.

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In the face of this crisis, calls for diversification are intensifying. Agriculture, technology, and renewable energy: Several governments are seeking to build more resilient economies. However, breaking free from oil dependency remains a colossal challenge, as this resource remains central to national budgets.