Members of the Nigerian National Assembly are reportedly in a state of dilemma over what to approve as the official crude oil benchmark for the 2016 budget. The N6.07 trillion budget proposed by the Presidency is set to be referred to the committee stage on conclusion of the second reading this week after undergoing two days of deliberation on the general principles.
Majority of the law makers are said to be of the view that the $38 per barrel proposed by the President is no longer realistic following the plunging price of crude oil, with oil prices already under $28, about $10 less than the budgeted figure, at a time the budget had yet to reach the committee stage.
The Senate had also concluded plans to seek the opinion of both domestic and foreign-based economists and financial experts on the best approach to adopt in arriving at a realistic oil benchmark for the 2016 budget implementation.
The Senate spokesperson, Senator Sabi Abdullahi, and the Chairman, Senate Committee on Finance, John Enoh, argued that the most realistic option at the moment was for the National Assembly to approve the downward review of the benchmark in conformity with current oil price.
Falling Oil Prices May Force National Assembly to Review $38 Crude Oil Benchmark – https://t.co/Ia6ZQ6Av8E … —