Nigerian Finance Minister Zainab Ahmed said on Wednesday that the government is assuming a Crude Oil benchmark price of $57 per barrel for the 2022 budget. The higher Crude Oil production at 1.88 million barrels per day.
Africa’s largest oil exporter is producing roughly 1.47 million BPD of oil as a result of an agreement with OPEC and other oil-producing nations to curtail output. Its capacity is around 2 million BPD. The current benchmark Brent Crude Oil price is $73.60 per barrel.
Nigeria relies on oil exports for more than half its budget and 95% of foreign exchange. Ahmed said that total spending by the federal government next year would be$34 billion an increase of 3% from this year’s budget. Crude Oil prices weakened Tuesday, giving up sizable gains as traders digested the failure of a group of major producers to come up with an agreement over future output levels.
U.S. crude was down 0.8% at $74.56 a barrel, after earlier climbing to near seven-year highs, while Brent was down 2% at $75.61.U.S. Gasoline RBOB Futures were down 0.8% at $2.2810 a gallon.The Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, ended discussions on Monday over the amount of oil to return to the market. This was due to the United Arab Emirates refusing to sign an agreement that would have resulted in around 400,000 barrels a day returning to the market each month from August to December as well as the extension of the broader deal until the end of 2022.