The 56th Independence day celebration has indeed come with its own good news, as the Nigerian economy is set to get better with the recent increase of oil to $50 per barrel in the international market.
This new development has signaled a boost for the funding of the economy as the country’s 2016 budget has suffered a major setback due to the financial challenges in the country as a result of the decline in crude oil prices.
The federal government had predicted the 2016 oil budget benchmark at $38 per barrel but the steady decline in crude oil has brought the nation’s economy to a standstill.
Last Thursday, following the decision of the Organization of Petroleum Exporting Countries (OPEC) to cut production in an attempt to cut glut by reducing production to a range of 32.5million to 33million barrels per day from around 33.5million barrels per day.
Specifically, Brent crude oil traded for $49.34 per barrel while West Texas intermediate (WTI) rose to $47.89 a barrel.
Meanwhile, the current challenge of pipeline vandalism in the Niger Delta region of the country is a cause for concern as stakeholders complain it is a major setback to the economy.
The Minister of Petroleum, Dr Ibe Kachukwu, has said that following the spate of attacks on oil and gas assets, Nigeria’s output of crude oil had declined to 1.4million barrels per day from 2.2million.
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