2015 is viewed by many as a an election year whilst some including us at Nairametrics see it as a year where Nigeria’s fiscal well-being will be challenged. The country is facing a dual danger of lower crude oil prices as well as challenges in meeting up oil production targets. Despite this, the Minister of Finance pegged the 2015 Budget price at $65 with the hope that fortunes might change for the crude oil prices. Unfortunately, not many analysts believe fortunes might be turning around anytime soon.
Goldman Sachs analysts in a Bloomberg article have been quoted predicting that “West Texas Intermediate, the U.S. marker crude, will trade at $41 a barrel and global benchmark Brent at $42 in three months”. Goldman sights the unlikely event that OPEC will cut crude oil prices ensuring the market remains over supplied throughout the year.
With this sort of reports making the rounds amidst the falling oil prices, it is unlikely that the 2015 budget will continue to hold out at the benchmark price of $65. If the Goldman predictions does come through, then it is unlikely that the 2015 Budget will pass through the National Assembly at this price let alone fly in reality. The budget may just be doomed to fail already, at least based on the $65 benchmark.
