Nigeria reels under as low oil prices impact budget
LAGOS, December 8, 2014 – The significant drop in Brent crude prices from around $115 per barrel in June to $68 per barrel earlier this week might have cost the Nigerian economy $11.5 billion in losses, local reported over the weekend. The ministers of finance and economy are still running the numbers to determine the actual loss.
In response, the Nigerian federal government has revised its 2015 budget benchmark to $65 per barrel. Other revisions include adjusting the exchange rate, proposed tax and expenditure measures and a tightening of monetary policy. Nigeria exports 2.2 million barrels of oil per day of the 2.4 million it produces.