The West

Nigerian s budget based on $US75 oil price
Nigerian s budget based on $US75 oil price

Nigeria's 2013 budget will be based on a world oil price of $US75 per barrel and projected national output of 2.53 million barrels per day, Finance Minister Ngozi Okonjo-Iweala says.

Nigeria, Africa's largest oil producer, derives more than 90 per cent of its foreign exchange earnings from oil.

"We are working on the basis of projection of crude oil production of 2.53 million barrels a day. This is compared to 2.48 million barrels a day in 2012 ... and a benchmark price of $US75 a barrel," Ms Okonjo-Iweala said on Wednesday.

"This compares to $US72 a barrel last year," she told journalists after a weekly cabinet meeting chaired by President Goodluck Jonathan.

Nigerian oil production hit its highest level ever last week, 2.7 million barrels per day, the state oil firm said on Friday, though hurdles remain to a sustained boost in production.

The west African nation has seen crude production rebound since a 2009 amnesty deal for militants in the Niger Delta region which led to a sharp decline in unrest there.

It has been producing between 2.0 million and 2.4 million barrels per day in recent months, according to International Energy Agency figures.

But sabotage and oil theft continues to feed a lucrative black market.

Anglo-Dutch oil giant Shell, historically Nigeria's largest producer, said in April that there were estimates of 150,000 barrels per day of oil and condensate being stolen in the country.

"The projected revenue for 2013 is 3.891 trillion naira ($A23.11 billion)) and the projected expenditure is 4.929 trillion naira ($A29.20 billion)," the minister said.

The 2013 budget predicts a fiscal deficit of 2.17 per cent of gross domestic product (GDP), down from 2.85 per cent in 2012, Okonjo-Iweala said.

The budget proposal will be presented to parliament by September.

The West Australian

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