Buhari presents budget, FG expected to earn $4bn from oil in 2016


President Muhammadu Buhari said Tuesday that the federal government expects to earn  N820 billion ($4 billion) from oil exports in 2016, based on a production assumption of 2.2 million b/d and a benchmark price of $38/barrel, Platts reports.

This compares to this year’s projected oil earnings of N3.9 trillion ($19 billion) which was predicated on output of 2.28 million b/d and a price assumption of $53/b — which was not realized, as global oil prices plummeted to a multi-year low while Nigeria’s production suffered from theft and the lack of new investment.

Presenting the 2016 budget proposal of N6.08 trillion ($30.1 billion) to parliament, Buhari said the sharp decline in oil earnings meant the government would need to restructure the oil and gas sector, to check corruption and inefficiencies, explore alternative funding to enable it fund its share of joint venture oil projects both in onshore and deep offshore fields and also cut subsidy on fuel imports next year.

  • Reason-ability

    when we put the issues around Dasuki’s theft of $2.1bn into perspective along with our projected earnings in 2016, dasuki stole at least half of one year’s earnings. Scary

    • Standing Emperor

      While that is really serious, we should bother also with how realistic can these earning be with the fall in crude oil price