Benchmark Row Continues in the Nigerian House of Representatives
The debate over the crude oil benchmark is continuing in the House of Representatives with the legislators digging in over their insistence on a benchmark of $80 per barrel.
Oil was pegged at a benchmark of $75 in the President’s budget which was presented to the National Assembly two weeks ago. The Senate has since approved the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy paper contained in the budget, however fixing the benchmark at $78.
The benchmark is the oil price on which the budget is based and if the market price ends up higher, the excess will accrue to the Excess Crude Account and disbursed from there for specified projects.
The Minister of Finance, Ngozi Okonjo Iwealla had been keen to fix the benchmark at $72.