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Nigeria’s budget benchmark rose to $67 per barrel

The international oil benchmark, Brent crude, rose further on Wednesday to $67 per barrel, compared to Nigeria’s budget benchmark of $40 per barrel.

For Nigeria, which relies on crude oil for about 50 per cent of government revenues and over 90 per cent of export earnings, rising oil price means increased revenue.

On the other hand, rising oil price also translates to increased cost of petroleum products as the country depends heavily on imports due to a lack of domestic refining.

Brent crude, against which Nigeria’s oil is priced, rose by $1.77 to $67.14 per barrel as of 8.52pm Nigerian time on Wednesday, trading more than $27 higher than the Federal Government’s benchmark for the 2021 budget.

The 2021 budget, which was signed by the President, Major General Muhammadu Buhari (retd.), on December 31, was based on an oil price benchmark of $40 per barrel and a production level of 1.86 million barrels per day.

According to the budget, 30 per cent (N2.01tn) of projected revenues is to come from oil-related sources while 70 per cent is to be earned from non-oil sources.

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Nigeria is currently losing an average of 200,000 barrels of crude oil daily, the NNPC stated

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