Oil price benchmark now $28 per barrel

The benchmark for crude oil prices in line with current realities occasioned by the Coronavirus which was earlier slated at $25 per barrel has now been raised to $28 per barrel. 

This was a resolution of the Nigerian at plenary of Tuesday, raising the earlier benchmark by the executive by $2.

The budget benchmark was approved after Solomon Olamilekan, chairman senate committee on finance, presented a report on the revised medium term expenditure framework (MTEF) and fiscal strategy paper (FSP).

The MTEF and FSP which the 2020 budget was predicated on was amended after a drop in crude oil prices owing to the COVID-19 pandemic.

The upper legislative chamber also placed oil production at 1.8 million barrels per day against the 1.7 million barrel per day earlier projected by the executive.

“That due to current realities and downturn in the global economy the N360 /US $1 as proposed in the MTEF amendment by sustained with continuous effort by the Central Bank of Nigeria to stabilise the exchange rate ensures to no further devaluation of naira against the dollars and also call on the executive for strong diversification of the economy,” Olamilekan said while presenting recommendations of the committee.

“That the sum of N500 billion intervention fund drawn from various special accounts,and with the utilisation of the fund clearly stated, and projects already added to the proposed revised 2020 budget sent to the national assembly be approved by the senate.”