By Emeka Anaeto, Babajide Komolafe, Ediri Ejor & Prince Okafor LAGOS—Nigeria’s hope of returning to economic recovery brightened, yesterday, as crude oil price hits an 18-month high of $58 per barrel.

With the proposed 2017 budget based on crude oil price of $42.5 per barrel and 2.2 million barrels daily production, this development translates to additional N500.4 billion revenue inflow outside the budgetary estimates.

The federal government is proposing a budget of N7.28 trillion for the year 2017. The aggregate revenue to fund the 2017 budget, according to the budget framework, is expected to increase over the 2016 estimate of N3.855 trillion by about eight per cent or about N313billion. Thirty-three per cent of the amount is expected from oil sources while the balance is derivable from non-oil sources in consonance with the government’s renewed focus on diversification of its revenue base.

Though the 2017 budget came against speculation that 2.2 mbpd oil output was too ambitious given the Niger Delta crises which had forced down output to about 1.4mbd mid this year, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu already indicated that the various negotiations with the Niger Delta leaders have yielded stability leading to uptick in output to about 1.9mbpd in November with expectations of continued rise in production level to even surpass the budgeted benchmark.

Oil prices, yesterday shot up by over 4.5 per cent to hit $57.89 per barrel, its highest level since July 2015. The renewed price surge came after Organization of Petroleum Exporting Countries, OPEC, and other producers over the weekend in Vienna reached first output cut deal since 2001.

The cut was in order to rein in over-supply and prop up prices in the market.

Meanwhile, latest survey conducted by S&P Global Platts, has shown that oil production from OPEC for November rose for the sixth straight month to a record of 33.86 million barrels per day, mb/d, while further rises in December are expected as members and other parties to the production cut agreement try to maximize lead time ahead January 1, 2017 when the output cut agreement goes into effect.

The survey also indicated that Nigeria, which is exempted from the OPEC cuts, had remained at 1.68 mb/d in November, contrary to the figure given by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who said outpu

On current price development, Brent sweet crude futures, the international benchmark for oil prices, soared to $57.89 per barrel in overnight trading between Sunday and Monday, its highest level in 18 months.

U.S. West Texas Intermediate (WTI) crude futures also hit a July 2015 high of $54.51 a barrel.

With the OPEC output deal finally signed after a year of negotiations, the market’s focus will now switch to compliance with the agreement.

ANZ Bank said that Saudi Aramco, Saudi Arabia’s state-controlled oil company, had informed customers that their allocations would be reduced in January 2017, in line with the recent OPEC production cut agreement.

OPEC has said it will slash output by 1.2 mb/d from January. 1, with top exporter Saudi Arabia cutting around 486,000 bpd in a bid to end glut.

Glut has dogged oil markets for over two years and pushed the economies of many oil exporting countries, especially Nigeria and Venezuela, into crisis.

Read more at: http://www.vanguardngr.com/2016/12/budget-2017-gets-boost-as-oil-price-hits-58/

ok Expecting more good news as we get closer to 2017.Pray for the good of Nigeria, those that love her shall prosper.

Bad news crew 2017 is not for you.

modified
Ftc celebrate with me. 2017 is going to be great for you and me. Diversification already delivering through bumper agricultural production especially rice and cassava.

I'm so excited, this government will succeed after all. If in doubt ask the farmers how they smile to the bank daily. Are you hungry pm me, I can give you land to farm. Wailing here will not help you do something good with your life. Just an advice no harm intended.

By God grace we will get there.

I am very persuasive and optimistic about this country that we will rise again despite our present challenges.

Though it takes an understanding to stick with your belief, it takes virtue to stay patience even when the odds are against you.
#IBelievesInNigeria.

Good, No excuses

Nigeria will be great once more

We could all remember the brouhaha that followed pegging the oil price to $38 in the 2016 budget even when oil price was sold at $30. Despite the government saying that they have consulted wide, some "emergency economic experts" were all over the space telling us that it was impossible. But at the end, since the end of February this year, oil price never sold below $38.

Majority of the so-called "experts" have never come up to say that they were wrong. They should apologize to us because it was on the basis of their wrong postulations that some people were attacking the budget team. The moral of the story is that we should not because of primordial interest condemn the work of the others. We may be wrong and they may be right.

God bless my dear country.

I pray this budget will be implemented. We've suffered enough. God please give this administration sense of direction come 2017 to alleviate us from backwardness, hunger and starvation

Amen oh

It depends on our volume of production. FG targets 2.2bpd daily but now we produce less than 1m daily due to militancy in Niger Delta

And Bishop "Gate of Hell" said it will be a tougher 2017.


I wonder where this gods of men get revelations from.

As at date, statistics and indexes re already showing we re having a better year ahead and all some people can just see is doom.

its funny how some persons earnestly wish a government to fail just to set a score for cheap agradization to a certain party of their interest.

Truth is when a government fails the whole country suffers without prefences.

U need job but glorify a recession which in its interim lowers your chances by over 100%

This is a very good news,, at least we should start saying bye bye to recession

That's good. I do hope this would translate to meaningful development, thereby improving the welfare of well-meaning Nigerians.

ok

una are making the same mistake again...
becoming lazy and depending on oil......

no more diversitizing,no more going back to farming..
learning professions that no body needs..

useless people...

More money to share

i pray it continue increasing so as to let this our beloved nigeria at least, a chance in this recession.
Meanwhile, make money from your conveniency.
check my signature.

Freetech:
ok Expecting more good news as we get closer to 2017.Pray for the good of Nigeria, those that love her shall prosper.

Bad news crew 2017 is not for you.

It isn't good news either.

1.We need oil to be much higher than that

2.Oil prices are going to fall again....especially as more countries produce oil.

3.We need to diversify. An oil price increase would make us forget about diversification.

I so much believe this country is going to her greatness

By the grace of God my country Nigeria will experience 2017 for good.
God bless Nigeria
God bless PMB and his team
God bless Ondo state

9jakohai:


It isn't good news either.

1.We need oil to be much higher than that

bad idea..

we will be in the same situation again in the future..

our leaders can not force us if we dont do the right thing now...go back to farming..

farming is our strength not oil...

Good news!

Can't wait for the recession to end. May God help us.

Besides, Buhari should do the needful as regards negotiations with the ND

darknetcom:
una are making the same mistake again...
becoming lazy and depending on oil......

no more diversitizing,no more going back to farming..
learning professions that no body needs..

useless people...

u ar right, we need to focus on sm other sectors rather than depending on oil

When I hear proposing 2017 budget it makes me feel like they are claiming to have implemented 2016 budget with few remaining weeks to go..

Can anyone remind me anything achieved with that amazing "budget of change" as zombies do chant then.

ok

This article is actually wrong according to Kachikwu interview on Bloomberg TV yesterday. Until the activity of Militants is checked, Nigeria may not fully benefit from current surge in global oil prices.

sparrowkid:
We could all remember the brouhaha that followed pegging the oil price to $38 in the 2016 budget even when oil price was sold at $30. Despite the government saying that they have consulted wide, some "emergency economic experts" were all over the space telling us that it was impossible. But at the end, since the end of February this year, oil price never sold below $38.

Majority of the so-called "experts" have never come up to say that they were wrong. They should apologize to us because it was on the basis of their wrong postulations that some people were attacking the budget team. The moral of the story is that we should not because of primordial interest condemn the work of the others. We may be wrong and they may be right.

God bless my dear country.

Then u overlooked the efforts of kwachukwu who was directly or indirectly involved in the efforts to make OPEC cut down production which was solely the reason oil prices stayed stable and then slowly sluggishly started rising. The budget team was incompetent, that one u know and thats why they where condemned. That someone is incompetent doesn't mean he/she can't make good suggestions. I think we should please differentiate between criticism and condemnation here. Those in power should not hope to be treated with kids glove cos they hold and run the collective lives of lots of people so they should expect to be criticized, insulted and condemned if need be so that they can be on their toes.

2.2 m barrel per day output is wrong because Nigeria is currently hovering around 1.3m-1.5m

Atiku2019:
Good, No excuses

Please face your Atiku this news is not for you.

BoleynDynaSTY:
I pray this budget will be implemented. We've suffered enough. God please give this administration sense of direction come 2017 to alleviate us from backwardness, hunger and starvation

The administration already have sense of direction but the money to boost the economy is the problem...


But i hope for goodnews in 2017..