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Nigeria sets 2016 oil revenue target lower at $4 $4 billion

Staff writer ▼ | December 24, 2015
The Nigerian government expects to earn Naira 820 billion ($4 billion) from oil exports in 2016.
Nigeria oil
Low oil prices   President Muhammadu Buhari presented the 2016 budget proposal
This is based on a production assumption of 2.2 million b/d and a benchmark price of $38/barrel, President Muhammadu Buhari said.

This compares to this year's projected oil earnings of N3.9 trillion ($19 billion) which was predicated on output of 2.28 million b/d and a price assumption of $53/b which was not realized, as global oil prices plummeted to a multi-year low while Nigeria's production suffered from theft and the lack of new investment.

Presenting the 2016 budget proposal of N6.08 trillion ($30.1 billion) to parliament, Buhari said the sharp decline in oil earnings meant the government would need to restructure the oil and gas sector, to check corruption and inefficiencies.

The president also said he had directed the state oil firm Nigerian National Petroleum Corp. to explore alternative funding to enable it fund its share of joint venture oil projects both in onshore and deep offshore fields.

"We are confident that these measures can be achieved and will lower the burden that the traditional cash calls have imposed on our budget and cash flows as well as contribute towards shoring up our national reserves," Buhari said.