Uncertainty in oil market threatens 2017 budget – Kachikwu

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The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, while speaking to journalists on Wednesday at the Federal Executive Council said the 2017 budget implementation will be affected by growing uncertainties in the global oil market, Daily Trust reports.

He said; ”In terms of the budget impact, definitely, I mean, it is predicated on the number of 2.2 million barrels per day and a price index of 42.50 dollars. Within the price cap, I think we’re still reasonably within range. Obviously we have lost quite a lot of months, some months, at least, two or three in which we did not produce what the budget had projected, so there is definitely going to be differential.”

”Like you know, the Ministry of Finance is aggressively looking for ways to cover some of these shortfalls; part of that is efficiency, how do we cut down our expenditure? Obviously, certain capital items will be affected; if we do not have money, we cannot do certain capital projects that we have in the budget. There is no gainsaying the fact that the budget will be impacted but we are working hard with the Federal Executive Council to see how we can forecast or predict that sort of impact and see how we can recover,” he added.