Nige­ria faces bud­get un­cer­tain­ties over fall­ing oil prices

Daily Nation Newspaper - - EXTRA BUSINESS & CORPORATE -

ABUJA

- There are strong in­di­ca­tions that Nige­ria is cur­rently be­ing faced with un­cer­tain­ties over the im­ple­men­ta­tion of 2018 bud­get which was bench­marked at $50.5 per bar­rel.

Crude price has fallen to less than $60 per bar­rel from above $80 per bar­rel in 2018.

This has been gen­er­at­ing some con­cern among in­dus­try stake­hold­ers in­clud­ing the Minister of State for Petroleum Re­sources, Dr Ibe Kachikwu, who said the coun­try is hav­ing a tough time meet­ing com­mit­ments to fis­cal re­spon­si­bil­i­ties.

Kachikwu, who was quoted in a state­ment, stated that “Nige­ria is fac­ing un­cer­tain­ties over bud­get­ing as a re­sult of fall­ing oil prices. The coun­ try is also hav­ing a tough time meet­ing com­mit­ments to fis­cal re­spon­si­bil­i­ties.

“This por­tends dan­ger be­cause what it does is that, for the first time, we have been alarmed as one of the coun­tries that rely al­most solely on re­ceipts from oil. There is the un­cer­tainty of bud­get­ing and meet­ing fis­cal re­spon­si­bil­i­ties.”

The minister ex­pressed con­cern over the fall in oil prices, say­ing it poses dan­ger to the coun­try’s econ­omy.

“The tum­bling of oil price from $82 per bar­rel to about $61 over the past few weeks is the tough­est black Fri­day that we have faced. The price has tum­bled by about $30 in a short pe­riod of about 54 weeks.

“What this says to us is that ul­ti­mately, we have to find the world’s oil or­der in which prices are sta­ble and in­vestors can make the right de­ci­sions.

Ev­ery­one has to work to­gether in­clud­ing Pres­i­dent Trump to pro­tect con­sumers as well as pro­duc­ers be­cause, un­less we have a steady and de­ter­minable price for oil, we are not go­ing to have in­vest­ments. Our abil­ity to fund bud­gets and coun­tries that do not add ad­di­tive value to oil re­sources will have dif­fi­cul­ties,” he said.

- Nige­rian Tri­bune.

Crude price has fallen to less than $60 per bar­rel from above $80 per bar­rel in 2018.

Newspapers in English

Newspapers from Zambia

© PressReader. All rights reserved.