Data from the Central Bank of Nigeria (CBN) revealed that crude oil price rose above $100 in February 2022 and has exceeded its historical price since 20143. The rise in crude oil is mainly due to the shortage of supply and the ongoing crisis between Russia and Ukraine, which has heightened the level of uncertainty in energy supply. Russia is the third-largest producer of crude oil in the world after the United States and Saudi Arabia. The current rise in crude oil prices is temporary, and the extra revenues due to the higher prices are term revenue windfall. Therefore, the government should create a special fund to keep the revenue windfall and serve as fiscal buffers against low crude oil prices. The existing challenges affecting crude oil production in the country, such as insecurity, infrastructural decay, and inadequate investment in the oil sector, might limit the gains associated with the current increase in oil prices. Hence, the prompt passage of the proposed revision of the petroleum industry Act is crucial in addressing the Nigerian oil industry challenges.