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FG Sets 2015 Budget Benchmark At $78/bbl Despite Oil Price Plunge

The federal government has proposed an oil benchmark of $78 per barrel for the 2015 budget, 0.50 cents higher than the $77.50 per barrel approved by the National Assembly in the 2014 budget. This approval is coming In spite of falling oil prices.

The 2015 oil benchmark was reflected in the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) sent by President Goodluck Jonathan to the National Assembly on Monday and read on the floor of the Senate yesterday.

The proposed 2015 expenditure plan translates to almost a N100 billion increase from the N4.724 trillion appropriated by the National Assembly in 2014.

However, market analysts are predicting that the price of crude would plunge below $80 a barrel due to slowing global demand and the rise in US shale oil production.

SOURCE

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