…..Now let me move on to the 2015 budget parameters. It has been a difficult time to put together the 2015 Budget which has come this late as a result of the developments we spoke about earlier in the international oil market.
The 2015-2017 MTEF was prepared and transmitted to the National Assembly (NASS) early in September 2014 and we were gearing to have the 2015 Budget presented to the NASS in October. But shortly after transmitting the MTEF, oil prices began to fall precipitously, threatening the benchmark oil price of $78pb proposed. This necessitated further engagements with the NASS and the benchmark was revised to $73pb. But then, oil prices continued to fall leading to further revisions to $65pb.
These necessary changes in the MTEF since September are responsible for the late presentation of the 2015 Budget.
The scenario of rapidly declining oil prices is playing out. Nigeria cannot control the price of oil, but we can control our response to it. This is what we have done by proposing a benchmark of $65pb.
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