Connect with us

Revenue Streams

2019 Budget Under Review Owing to Oil Price Crash – REPORTS

Published

on

2019 Budget Under Review Owing to Oil Price Crash - REPORTS

2019 Budget Under Review Owing to Oil Price Crash – REPORTS

Oil Price Crash Forces Review of 2019 Budget Benchmark Against the backdrop of a long and steady decline in the international oil price, the Federal Government may have started reviewing developments in the global oil market with the intention of adopting a new oil price benchmark for its 2019 budget. BY Emmanuel Ujah, Udeme Akpan and Victor Young

READ MORE

Against the backdrop of a long and steady decline in the international oil price, the Federal Government may have started reviewing developments in the global oil market with the intention of adopting a new oil price benchmark for its 2019 budget.

This came as the decline appeared to have bottomed out, yesterday.

The N8.6 trillion budget was based on $60 per barrel (p/b) benchmark at a time international oil price was around $75p/b.

Though the price later escalated to about $86p/b, it began a downward trend about seven weeks ago closing at a year low of $59p/b last weekend. It, however, increased marginally to $61 as at yesterday, which is still a threat to the 2019 budget, especially as a gap of at least $10 is required between the budget benchmark and prevailing oil price.

Consequently, in an email to Vanguard on Sunday, Director-General of the Budget Office, Mr. Ben Akabueze, stated: “$60 oil price benchmark for 2019 was based on our review of projections from multiple sources by knowledgeable organisations on the subject of oil pricing. It was deemed quite conservative four months ago when we settled for $60.

“We are willing to review the price projection downwards if it becomes clear that it is no longer sustainable. An alternative benchmark will be determined, following same process explained above.”

But Vanguard oil price monitor indicated a significant positive shift in the oil price trend as the commodity traded above $60/pb, yesterday.

However, explaining further on challenges of Nigeria’s oil economy, Akabueze said: “Current oil production in Nigeria is about 2.1 million barrel per day, mbpd, still below the budget projection of 2.3 mbpd.

“OPEC production numbers do not include condensates whereas the number stated in the budget and NNPC’s reports include condensates. Nigeria has capacity to produce up to 450,000 bpd equivalent of condensates.

“Continuing diversification of the economy, domestication of raw/intermediate materials sourcing for manufacturing, formalization of the non-oil sector, as well as stronger focus on tax administration/legislation will ultimately break the dependence on oil for government revenues.”

Business Africa

Nigeria to Become Petroleum Product Refining Hub, Minister Says

Published

on

By

The Federal Government has said it will leverage the opportunities provided by the African Continental Free Trade Area Agreement to reposition the oil and gas sector in other transform the country into a petroleum products refining hub for the African region

 

The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this at the AfCFTA Oil and Gas Virtual Workshop, with the theme: “Nigeria – Africa’s Refining and Services Hub under the AfCFTA.

 

Represented by Bitrus Nabasu, the permanent secretary Ministry of Industry, Trade and Investment, Sylva said Nigeria had approved the AfCFTA, which would begin implementation in January 2021.

 

According to him, the African Continental Free Trade Area Agreement aims to redefine trade relations between African states while enabling free movement of people and investments

 

Sylva also added that the government was also committed to deepening gas utilization as seen in its National Gas Expansion Programme and the Auto Gas Scheme.

 

Continue Reading

Newsroom

N81.41bn Spends on Refineries, Refined No Crude-NNPC

Published

on

NNPC

Data obtained from the Nigerian National Petroleum Corporation, NNPC showed that a total of N81.41bn was consumed on Nigeria’s refineries between January and August this year but the facilities refined no drop of crude oil.

It was further gathered that for 13 straight months, Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company, and Warri Refining and Petrochemical Company had been running without refining any volume of crude oil.

Click to Watch Our YouTube Videos

Data from the fused refineries operations put the volume of crude processed by the facilities from August 2019 to August 2020 at zero metric tonnes.

The National President, Independent Petroleum Marketers Association of Nigeria, Chinedu Okonkwo, said, “Getting our refineries working optimally is so vital now to save us the continued depletion of our foreign exchange.

“I know the NNPC is working towards that and we hope the refineries will come on board as soon as possible because this might also help in reducing the cost of refined petroleum products.” He added.

The Director-General, Lagos Chamber of Commerce and Industry, Dr. Muda Yusuf, noted that the dominance of the public sector in this space had significantly slowed down the progress and development of the oil and gas sector.

Incase You Missed:

nigeria-to-resume-fuel-imports-from-niger-republic

joint-security-team-comprising-of-army-police-patrol-kaduna-abuja-road

Continue Reading

Newsroom

PENGASSAN Declares Meeting with FG Inconclusive, Continues Strike

Published

on

PENGASSAN

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Wednesday said a meeting it held with the Federal Government was inconclusive.

Click to Watch Our YouTube Videos

He said the government was yet to address some of PENGASSAN’s demands.

The parties had disagreed after the directive that the oil workers register for the Integrated Payroll and Personnel Information System (IPPIS).

Osifo disclosed that PENGASSAN maintained that Petroleum Training Institute and Petroleum Product Pricing Regulatory Agency, must be paid using the harmonized template of 2015.

He noted that this was already in use by the budget office, appropriated by the National Assembly and signed by President Muhammadu Buhari into law.

The labour leader said the union wants a high-powered committee, comprising Nigeria Union of Petroleum and Natural Gas workers and PENGASSAN Presidents, to settle the outstanding issues surrounding the IPPIS platform.

“For the 22 months salary arrears, government agreed to pay 50 per cent and that the balance would be worked out after Federation Accounts Allocation Committee has met.

PENGASSAN has agreed, but insisted that there should be a definite date for payment of the balance,’’ he said.

Incase You Missed:

Good News! We are Not Removing Fuel Subsidy – FG

House of Reps Calls on MDA’s to Remit Internally Generated Revenue

Continue Reading
COVID-19 PREVENTION

infectious diseases in your community. It is very important to wash your hand frequently with soap under running water.

COVID-19 IS REAL

#COVID19NIGERIA Situation Report

The #COVID19Nigeria situation report for 21st July, 2020 has been published. Our daily reports provide a summary of the epidemiological situation & response activities in Nigeria

The #COVID19Nigeria situation report for 21st July, 2020 has been published. Our daily reports provide a summary of the epidemiological situation & response activities in Nigeria

@Africa CDC

The African Union and Africa CDC will virtually rollout the Partnership to Accelerate COVID-19 Testing (PACT) in Africa tomorrow 4 June, 2020 at 11.00 am Eastern Africa Time.

The African Union and Africa CDC will virtually rollout the Partnership to Accelerate COVID-19 Testing (PACT) in Africa tomorrow 4 June, 2020 at 11.00 am Eastern Africa Time.

GALLANT OFFICER

Gallant Officer
"Also found worthy of honour was Bashir Abubakar, an Asst Comptroller-General of Customs, who rejected a bribe of $412,000 per container offered him by drug traffickers seeking to bring 40 containers of Tramadol into Nigeria. A fine example of incorruptibility, worthy of emulation"

Trending