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LequteMan
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Nigeria's Minister of State for Finance, Bashir Yuguda, has said the federal government would not review the 2015 oil benchmark further, as price intelligence has shown that crude oil prices would average between $65 and $70 per barrel in 2015.
The government’s confidence, the minister pointed out, was anchored on the fact that American shale oil currently driving price shocks equally runs the risk of becoming unsustainable, as it was being produced at a high cost of at least $65 a barrel.
Since the oil crash in July, FG has reduced the oil benchmark from $78 to $65, and it's not wrong to think another benchmark review is on the horizon as oil price has fallen further to $54/barrel.
Analysts say, if sustained for long, government spending projections during the year could be significantly affected.
But, the government has said it is prepared to introduce further austerity measures to cushion the impact of further price fall outside the proposed range.
#Nigeria
The government’s confidence, the minister pointed out, was anchored on the fact that American shale oil currently driving price shocks equally runs the risk of becoming unsustainable, as it was being produced at a high cost of at least $65 a barrel.
Since the oil crash in July, FG has reduced the oil benchmark from $78 to $65, and it's not wrong to think another benchmark review is on the horizon as oil price has fallen further to $54/barrel.
Analysts say, if sustained for long, government spending projections during the year could be significantly affected.
But, the government has said it is prepared to introduce further austerity measures to cushion the impact of further price fall outside the proposed range.
#Nigeria
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