Nigeria assumes oil at $42.5, output at 2.2 mln bpd for 2017 – Reuters

By Felix Onuah

ABUJA, July 25 (Reuters) – Nigeria is assuming an oil price of $42.5 per barrel and output of 2.2 million barrels per day (bpd) in 2017, the budget minister said on Monday as he outlined the country’s three-year fiscal plan.

The blueprint expects both production and prices to rise each year up to 2019, and that the naira currency will recover and settle at 290 per dollar, according to the presentation by Udoma Udoma.

OPEC member state Nigeria’s economy has been devastated by falling crude prices and attacks on oil and gas facilities in the southern Niger Delta energy hub that have cut oil production from 2.2 million bpd to 1.5 million since January.

Udoma told a forum in the capital Abuja that projections for 2018 and 2019 were $45 and $50 a barrel and output of 2.3 million and 2.4 million bpd, respectively.

Bismark Rewane, economist and CEO of Lagos consultancy Financial Derivatives, described the oil price projections as conservative but highlighted the risk of further attacks in the Niger Delta.

“What is the plan to fund the (budget) gap if production falls?” he asked.

Udoma said “a significant increase in non-oil revenue receipts” was projected for 2017 to 2019 as the economy gradually recovered and tax collection improved.