2012 Budget - Govt Reviews Oil Benchmark

Daily Champion

19 October 2011

2012 Budget - Govt Reviews Oil Benchmark

Abuja — Federal Government yesterday revealed that the Crude oil price benchmark for the 2012 Budget earlier pegged at $75 per barrel has been reviewed downwards to $70 in view of the volatility and uncertainty in the international crude oil prices.

Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala gave the indication yesterday while making presentation at the on-going Institute of Chartered Accountants of Nigeria (ICAN) 41st annual conference with the theme "The Dawn of Transformation: embracing change and seizing opportunities"

Dr. Okonjo-Iweala who represented President Goodluck Jonathan explained that the Federal Government was disposed to reducing the budget benchmark "in light of the increased volatility and uncertainty."

She said: "We have consulted outside and inside and the feeling is that the uncertainties will continue, and we need to protect the country against that. Virtually every expert we have spoken to who has a view about the international and oil sector anticipates further uncertainties on the global environment and the volatility of the oil price and in view of this we need to protect the country against that and to look towards a more prudent benchmark. And this is why we are now looking at this to go down to $70 per barrel."