Expert lauds Senate on oil benchmark of 44.5 dollars
A financial expert yesterday described the oil price benchmark adjustment by the Senate in the 2017 budget from 42.5 dollars per barrel to 44.5 dollars per barrel as realistic.
Head of Banking and Finance Department, Nasarawa State University, Keffi, Dr Uche Uwaleke, stated in a recent interview in Lagos that the adjustment in the oil price benchmark made by the Senate in respect of the 2017 budget as contained in the 2017-2019 Medium Term Expenditure framework was realistic in view of expected rise in oil price.
“I think the adjustment in the oil price benchmark from 42.5 dollars per barrel to 44.5 dollars made by the Senate in respect of the 2017 budget as contained in the 2017-2019 Medium Term Expenditure framework is realistic.
“This is in view of the fact that oil price forecast by reputable international energy agencies such as the U.S Energy Information Administration is above 50 dollars per barrel on the average for 2017 on the back of the OPEC agreement to effect output cuts this year,” Uwaleke said.
He added that the oil benchmark market adjustment if properly harnessed, would reduce the budget deficit of over N2 trillion.
“At an exchange rate of N305 to the dollar used for the 2017 budget proposal, the oil price benchmark adjustment has the effect of reducing the budget deficit of over N2 trillion.
“It can also extend the size of borrowing requirement to finance the deficit,” he stated.
Uwaleke also called on the National Assembly to immediately commence consideration of the 2017 budget proposal, with a view to ensuring its early passage.
