Budget 2024 Threatened by $76.53 Oil

Budget 2024 Threatened by $76.53 Oil

Concerns Rise as Crude Prices Decline

The recent drop in the price of Nigeria’s Bonny Light oil to $76.53 per barrel is causing worries for the 2024 federal budget. The budget, which was set at $77.96 per barrel and 1.78 million barrels per day, may face difficulties due to the unpredictable global oil market.

Oil Production Decline Adds to Woes

In November, the Nigerian Upstream Petroleum Regulatory Commission reported a 7.4% decline in oil production to 1.25 million barrels per day. This decline further complicates the economic situation. Despite efforts to combat oil theft, the Nigerian National Petroleum Company Ltd continues to face challenges in the sector.

Minister Remains Optimistic Amid Challenges

Despite the challenges, the Minister of State Petroleum Resources, Senator Heineken Lokpobiri, remains hopeful about surpassing the 2024 budget target of 1.7 million barrels per day. He emphasizes the government’s commitment to working with stakeholders and creating a favorable environment for growth in the oil and gas sector.

European Interest in Nigerian Crude Rises

Despite the challenges, Nigeria’s crude oil is gaining popularity in Europe as it fills the gap left by the ban on Russian crude. The Executive Director of NNPC Trading Limited, Maryamu Idris, highlights the increased flow of Nigerian crude to Europe and emphasizes the importance of sustained production growth.

Experts Call for Investment and Diversification

Industry experts, including Austin Avuru, Founder and Executive Chairman of AA Holdings, are urging massive investment in the oil and gas sector to meet future targets. They emphasize the urgent need for increased funding and infrastructure development to drive growth in all sectors of the industry.

NNPCL Ends Fuel Import

Budget Concerns and Transparency Issues

BudgIT, a leading NGO promoting transparency, raises concerns about perceived discrepancies in the 2024 budget. They call for a thorough review of the budget, pointing out duplications in provisions for the renovations of the Presidents and Vice Presidents residences. The organization insists on the public disclosure of the National Assembly’s 2024 budget details and emphasizes the need for transparency to prevent corruption.

As Nigeria faces economic challenges, stakeholders are closely monitoring developments in the oil and gas sector, hoping for a resilient and diversified economy in the future.

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