The global oil market is in crisis again. In April 2025, the price of Brent crude oil dropped by more than 20%, sinking below $70 per barrel for the first time in four years. This crash is already putting pressure on oil-dependent countries in Africa, many of whom are struggling to balance their budgets and keep public services running.
Experts say the latest drop is caused by a mix of trade tensions—sparked mainly by the tariff policies of former U.S. President Donald Trump—and a chain of economic shocks across major economies. These have reduced demand for oil and created instability in energy markets.
In Nigeria, Africa’s biggest oil producer, the effects have been immediate. Falling oil prices mean lower government earnings. With oil still providing over 70% of Nigeria’s export revenue and a large chunk of its budget funding, this sharp fall is making things tough. According to budget analysts, Nigeria is now facing a widening deficit, which could lead to cuts in infrastructure projects and social welfare programmes.
It’s a similar story in Angola, where the government has begun emergency budget revisions. Some key development projects have already been put on hold, while others may be cancelled if the price drop continues. Gabon is also feeling the heat, as shrinking oil revenues force a slowdown in public investments. Officials there are now reevaluating their spending priorities, as the country tries to figure out how to keep essential services going.
The crisis has once again brought attention to a long-standing problem: overdependence on oil. For years, experts and policymakers have warned oil-rich African countries to diversify their economies. But change has been slow. Now, with revenue collapsing, the pressure is mounting.
Several countries, including Nigeria and Angola, are now renewing focus on agriculture, technology, and renewable energy. These sectors are seen as potential lifelines that can reduce the economic risks that come with relying too heavily on oil exports. In Nigeria, discussions are ongoing about investing more in cassava processing, solar energy, and digital infrastructure. But these shifts require time, funding, and strong political will.
Oil still plays a central role in many African economies, not just in terms of money but also in politics and power. Shifting away from it will not be easy. But for some leaders and analysts, this latest crash may be the push needed to start serious reforms.
In the short term, governments are focusing on limiting the damage. Some are considering fuel subsidies or emergency relief packages to soften the blow on ordinary citizens. Others are approaching international lenders for support. But the long-term view is that this could be a turning point.
“We’ve been here before,” one Lagos-based economist said. “But if we don’t act this time, the next crash might be worse. Oil won’t save us forever.”
