Senate reduces oil benchmark to $52

Lawmakers

The Senate on Tuesday, reduced the oil benchmark from 65 dollars to 52 dollars.

The News Agency of Nigeria (NAN) reports that this is the outcome of a closed-door meeting of the Senate in Abuja on Tuesday.

A source, which did not want to be identified, said the reduction was due to the dwindling oil prices in the international market and the problem it posed to implementing budget based on 65 dollars benchmark.

NAN gathered that the resolution was arrived at after two hours of meeting.

The source added that Senate reached the resolution to ensure that the 2015 budget was passed before the presidential election on March 28.

“The Executive had after series of reviews, pegged the 2015 oil benchmark at 65 dollars’’, the source further said.

It stressed that “we are not happy that most of the MDAs cannot execute any reasonable capital project this year.

“This is because the little money released to them by the Finance Minister was not enough to pay the contractors who executed projects for them.”

The source also disclosed that the former Minister of State for Defence, Sen. Musiliu Obanikoro, and seven other ministerial nominees, would appear before the Senate for screening and possible confirmation on Feb. 24. (NAN)