Nigeria has lowered the proposed benchmark oil price to be used in its 2015 national budget to $73/bl from an original $78/bl because of falling international crude prices.
This year's national budget is based on an oil price of $77.50/bl. Nigeria's Bonny Light crude is currently assessed at around $78.50/bl, well below the $117/bl reached in June this year.
The fall in Nigerian crude prices has already forced the government to tap into its foreign currency reserves to defend the value of a weakening domestic currency, with the naira failing to a record low against the US dollar this month.
The country's 2015 national budget is planned on oil production of 2.27mn b/d, down from the 2.38mn b/d estimated in this year's budget. The IEA estimates oil theft in the Niger delta at 150,000 b/d, resulting in lost revenue of more than $5bn/yr.
Nigeria faces national elections in February. Key legislation, including the long-delayed petroleum industry bill, is unlikely to be passed until after the polls. Legislators will have to approve the planned budget for next year.
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