Nigeria may review oil prices if crude continues to fall

The government of Nigeria may reduce the oil price benchmark of $38 per barrel outlined in its 2016 budget if global crude prices continue to fall.

While addressing parliament, Nigeria’s minister for budget and planning, Udoma Udo Udoma, said that the benchmark of $38 per barrel is not sacrosanct, because of the prevailing global environment.

He further added that the review of the oil price on which the record $30.3 billion budget is pegged on could take place as early as June this year. The budget is expected to be passed by law makers on March 17.

“If at mid-year there is no improvement, we would come back to you for mid-term review. The review may come as quickly as June this year,” he said.

Africa’s top oil producer relies on oil exports for about 95 percent of foreign earnings and the drop of oil price to around $30 a barrel, from over $100 in 2014, has prompted the worst economic crisis in the country.