LAGOS, Nigeria (ChatnewsTV) — Economist Bismark Rewane has criticized the $75 per barrel crude oil price benchmark set in Nigeria’s N47.9 trillion 2025 budget proposal, urging a more conservative estimate in light of global economic trends.
Rewane, who serves as the Executive Director of Financial Derivatives Company, voiced his concerns during an interview on Channels Television on Friday, a day after the Federal Executive Council unveiled the proposed 2025 budget.
The budget proposal includes a crude oil benchmark of $75 per barrel, with an oil production target of 2.06 million barrels per day and an exchange rate set at N1,400 per dollar.
In his analysis, Rewane warned that global factors, including the recent election of President-Elect Donald Trump in the United States, could affect oil prices in the coming year. He recommended a reduction in the benchmark to $65 per barrel to provide Nigeria with a buffer in case of economic shifts.
“I think the budget benchmark for oil price must be brought down near $65 per barrel so that there will be some headroom,” Rewane said, emphasizing the importance of fiscal prudence amid global uncertainties.
Despite his concerns over the oil benchmark, Rewane acknowledged the potential benefits of the overall budget. “Generally speaking, the budget is something that can be useful and can be worked with to achieve macroeconomic stability in 2025,” he added.
