Presidency proposes $42.5 oil price benchmark for 2017


For the next fiscal year, the executive arm of government has proposed a crude oil benchmark price of $42.5 per barrel, up from the $30 in the 2016’s budget.

An estimated N7.775 trillion is expected as revenue to be generated from the oil mineral resources alone based on the proposed $42.5 benchmark price and an estimated 2.2 million barrel per day oil production volume.

These proposals are contained in the 2017 – 2019 Medium Expenditure Framework and Fiscal Strategy (MTEF) prepared by the Ministry of Budget and National Planning that would guide the engagement with the National Assembly and other stakeholders, as well as the eventual implementation of the 2017 plan when finally passed and signed into law.
The proposal is to be submitted to the National Assembly before the end of August, according to the executive arm of government.
Yesterday in Abuja, the Budget and National Planning Minister, Senator Udoma Udo Udoma and the Minister of State in the Ministry, Mrs. Zainab Ahmed as well as the Director-General of the Budget Office of the Federation, Mr. Ben Akabueze, met with civil society groups to get their inputs to the MTEF in line with the provisions of the 2007 Fiscal Responsibility Act.

Unfolding the three-year MTEF budgetary plan, the executive also presented a crude oil production forecast of 2.3 million for 2018 and 2.4 million for 2019, just as it believes that the benchmark price for 2018 and 2019 would be $45 and $50 respectively. The proposal left the exchange rate at N290/$ for the three years beginning from next year to 2019 while it projected the inflation rate to remain at a double digit at 12.92 per cent for 2017; 11.88 per cent for 2018, and 12.57 per cent for 2019.


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