Nigeria aspires to stabilise economy amid oil downturn – President Goodluck Jonathan stated his government “will do anything necessary” to secure the nation’s economy among dropping oil costs.
Nigeria’s Bonny Light grade was assessed by Argus at $69.64/bl yesterday, compared with $117/bl in June this year. This year’s national budget is based on an oil price of $77.50/bl and average production of 2.38mn b/d.
The country’s crude production fell to an average of 2.15mn b/d in the third quarter of this year, Nigeria’s statistics office estimates. This is below the 2.26mn b/d produced a year earlier and the lowest level since the second quarter of 2013.
“The government will do everything necessary to stabilise the economy and that the drop in the price of crude oil will not create so much distortion in our economy,” Jonathan told a meeting of foreign investors.
The country’s finance ministry has already revised the planned oil benchmark to be used in next year’s national budget to $73/bl from an original $78/bl. The ministry has also drawn up plans to adopt a lower price of $65/bl for the 2015 budget, which has to be approved by legislators.
Nigeria’s naira has fallen to a record low against the US dollar because of the fall in oil prices, with the country’s foreign exchange reserves have fallen.
Nigeria is Africa’s largest oil and gas exporter and its biggest economy. It is scheduled to hold national elections in February next year.
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