Oil Price Hike: FG to Retain $55 Benchmark in 2020 Budget, Says Finance Minister
The federal government has given an indication that it will still retain its $55 per barrel oil price benchmark earlier adopted for next year’s budget despite the continued rise in oil price.
Oil price was as at Monday risen to $72 a barrel following the attack on Saudi Arabia oil facility Saturday.
The attack which was with the use of drone affected global supplies.
The attack is being suspected to have been carried out by Iranians based in Yemen.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, while reacting to the oil price rise said government will not be in a hurry to adjust the benchmark for the 2020 budget.
Ahmed who condemned the attack on Saudi’s oil facility said this was done despite the heavy sophisticated security, adding that this shows Nigeria’s oil facility could be vulnerable.
Describing the attacks as worrisome, the Minister said no one should celebrate such sad incident.
According to her, “we shouldn’t be rejoicing over the misfortune of others. If Saudi Arabia that has a sophisticated security system is affected in this manner, it means we are also vulnerable.
“So, let us not be in a hurry to celebrate. And as the minister of state has said, we should also not be in a hurry to adjust the revenues.”
Following the attack, the Organisation of Petroleum Exporting Countries (OPEC) has stepped up moves to assess the impact of the drone attacks on the market in order to come up with measures of response.
President Mohammed Buhari had Monday condemned the attack.
In a statement by his media adviser, Mallam Garba Shehu, the President said, “We in Nigeria once experienced attacks on our own oil facilities. Those who sought, by doing so, to undermine governments of the day did not succeed then – nor at any time.
“The identities of those who sent the drones to attack the Saudi refineries, and from where, may not yet be known. Still, these attacks similarly represent economic warfare aimed at damaging a government, but, in reality, always and only damaging innocent citizens’ livelihoods: those with no place, nor cause, to be harmed.
“The attackers of Saudi Arabia will win no friends in the international community for their actions – whoever they may be, and however certain they be in their cause.”
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