Crude production cost nearing selling price.

Except the federal government takes urgent steps to develop other sources of revenue, receipts from crude oil may soon amount to nothing and the 2016 budget may be difficult to implement.

This is because the difference between the current cost of producing a barrel of oil in Nigeria and the price of crude oil in the international market is negligible, even as some countries such as Uk, US, Norway, and Angola are already producing beyond the cost price.
The cost of producing a barrel of crude oil in Nigeria is put at $31.60 while the price of crude oil in the international market as at December 31, was $36.73 according to CNN. This leaves Nigeria with only a margin of $5.13 per barrel by the budget benchmark which is $38 per barrel.
Sadly, as Goldman Sachs had predicted since September 2015, “a glut of crude may keep oil prices low for the next 15 years” and “there is a higher chance that prices will drop to $20 a barrel”
Source: Business Day, Jan 01, 2016