AGOS— Global crude oil prices finally surpassed Nigeria’s budgetary benchmark, yesterday, trading above $39 per barrels. File This came as experts on the economy have cautioned the Federal Government to be frugal with the revenue accruing from the rise in oil price, so as to steer the country from the current economic downturn.

The price of Brent crude, the global oil benchmark, rose to an all-year high of $39.50 on yesterday, from $27.10 on January 20, the lowest for Brent in 2016.

The price of Nigeria’s crude has not been quoted by the Central Bank of Nigeria (CBN), but sources say the price may surge to the budget benchmark region of $38.

Nigeria’s 2016 budget was benchmarked at $38 per barrel against major criticism across the nation, following December 2015 prices of about $34 per barrel.

Experts caution
Wilifred Iyiegbuniwe, professor of finance at the University of Lagos, said though the increase will have a positive impact because the inflow of foreign currency will improve, the benchmark should not be reviewed.

He said: “Any recovery of the oil proceeds should go to a special fund. The economic team and the Federal Government should determine what should be done with it.

“Such excess revenue should be used to diversify the economy into such areas as agriculture, solid minerals and manufacturing. However, the benchmark should not be reviewed.

Also, Henry Boyo, an economist, said: “What happened every time the price was high above the benchmark? Was there greater employment? Was there relief in exchange rate? Was there improved productivity? We should think collectively as Nigerians, who are stakeholders in the polity".

Udoma Udo Udoma, Minister for National Planning, had initially said low crude oil prices would not affect the 2016 budget, insisting that the budget is achievable.

“Our budget is achievable; we have ongoing reforms targeted at diversifying our revenue base away from single oil commodity economy,” Udoma said in January. A week ago, Udoma said the country may have to review the budget benchmark as early as June, based on the recurrently low crude oil prices.

“The benchmark of $38 per barrel of price of oil is not sacrosanct because of the subsisting global environment,” he had said. “If at mid-year there is no improvement, we will come back to you for mid-term review. The review may come as quickly as June this year.”


Read more at: http://www.vanguardngr.com/2016/03/oil-prices-rise-to-39-beat-budget-benchmark-of-38/

This is good for the Nigerian economy .

Previously, crude oil was black gold, which benefit, was wasted by the wasteful regimes of the wasteful party of the past 15 years.
Baba God, thank you for availing us this lifetime chance of benefiting from the exemplary leadership of PMB.
Baba God, please, forgive us the sin we committed by blindly followimg the ineffectual leadership of the accursed PDP.
Baba God, shine the light on traducers and haters to find the way to righteousness.
And lastly, Baba God, hang this oil prize on the neck of $80 for just 3 years.

God bless PMB
God bless Nigeria
God bless me

Oil prices are rising because of production freeze and Buhari making the case to Saudi Arabia and GCC that Nigeria, Venezuela and even Russia need the price at a certain differential from the cost of production. I think Buhari's many travels are yielding dividends if oil price starts trending up in summer.

Alright.

What did Nigeria do with the money gotten from oil boom during Jonathan's thieving rule? The thieves shared the cookies and threw the crumbs, if any, to the masses. Now, and everyday, we pray and hope oil prices rise...we hinge our hopes on uncertainties.....that bad for Nigeria.

Jonathan is clearly the vehicle of failure for this country. Him, his thieving alibabas and dunce head wailers are evildoers and shall be judged by posterity

eyesofgod:
Previously, crude oil was black gold, which benefit, was wasted by the wasteful regimes of the wasteful party of the past 15 years.
Baba God, thank you for availing us this lifetime chance of benefiting from the exemplary leadership of PMB.
Baba God, please, forgive us the sin we committed by blindly followimg the ineffectual leadership of the accursed PDP.
Baba God, shine the light on traducers and haters to find the way to righteousness.
And lastly, Baba God, hang this oil prize on the neck of $80 for just 3 years.

God bless PMB
God bless Nigeria
God bless me

not even 1 like for you because you dull pass Buhari. Examplary ko, expo Ni

I hope and only hope against all odds dat dz news is for real..
Dat certainly means we would have enof turnover to pump into capital projects or diversify d economy.
God bless Nigeria

NIGERIA SHALL RISE AGAIN
I seek diversification

None of my bizness with crude oil price increase I just want the govt to find a solution to the current hyperinflation and appreciation of the naira currency.

We thank God/Allah...whatever you believe in!

989900:
Over $40 .My take: prices are ephemeral/fluid -- we need to approach with caution!

Cautious approach ihas been PMB modus up till now. Otherwise, the daunting issues would have made him lose focus.
I agreed that price of crude oil is fluidic but PMB is hardly someone that will get carried away by euphoria.

naijaboy756:
not even 1 like for you because you dull pass Buhari. Examplary ko, expo Ni

Whatever that's eating you up visit your pastor.

989900:
Over $40 now for Brent.

Good news: We have more funds. Baba stabilizing oil prices . . . lol He tried though, 'jokes apart'.

Bad news: We lose focus once oil prices appreciate, especially if there is a boom -- out goes all the diversification evangelism.

My take: prices are ephemeral/fluid -- we need to approach with caution!

My fear as well but i solemnly hope & believe Bubu won't take his eyes off the ball cos that will be disappointing & disastrous...