Nigerian senate raises crude oil benchmark to $28 per barrel

Nigerian Senate on Tuesday recommended that the price of crude be increased to $28 per barrel as against the $25 per barrel proposed by the federal government.

The Senate said the increase is imperative due to the recent upward trend of the crude oil market which, as at today, stood at $38 per barrel with a very strong expectation that the price will rise to $40 to $45 per barrel.

This recommendation was made by Senate sequel to approval of report of the Committee on Finance on the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

Also, the Senate urged that the oil production output be sustained at 1.8 million per barrel per day as proposed by the executive as this was the decision of cutting production by OPEC which Nigeria is a member. It further approved that due to current realities and downturn in the global economy, the N360 per US $1 as proposed in the MTEF amendment be sustained with continuous effort by the Central Bank of Nigeria to stabilize the exchange rate.

The Senate specifically called on CBN to ensure no further devaluation of the Naira against the dollars while the Executive strongly ensure diversification of the economy.