Ministry of Budget and Planning
crude oil

The Ministry of Budget and Planning has said Nigeria’s revenue is not gaining from the rise in oil prices as the country exports the product after refining.

Global oil prices have been on the rise recently, (got to $86 per barrel) and, according to projections, may well hit the $100 mark by the beginning of 2019.

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However, the Director of Budget at the ministry Ben Akabueze has said the development has not positively affected the country’s revenue base.

Akabueze said this on Wednesday in Abuja at the Strategic Dialogues on the Morocco-Nigeria Relations.

According to him, the rise in oil price rise, “is a double-edged sword, unfortunately. This ought to be a season where we should be clicking glasses with regards to the oil price.

“But right now, practically every drop of refined petroleum product that we consume in the country is imported.

“And the one single factor that determines the price of the refined product is the price of crude.

“In essence, while we export the crude at about $80 (per barrel), we effectively import back the same crude at about $100 importation price for refined products.

“And that explains why despite the strong oil prices, we are not seeing a corresponding growth in government revenue.”