Price of crude oil rises up to $40 per barrel

There seems to be a ray of hope for the Nigerian economy as the price of crude oil continues to ride steadily.
According to Business Day Online, oil prices rose close to $40 per barrel on March 7. The reduction in the output of US production increased the North American WTI crude benchmark. Brent crude which is the benchmark in the pricing of Nigerian oil increased by nearly 0.76 percent and reached some of the highest levels since early January and standing at $39.48 per barrel.

The increase in the price of oil in the international market is a welcomed development for Nigeria as it should be recalled that the 2016 budget is fixed at $38 per barrel. The fall in the price of oil to $30 per barrel forced changes to be made to the country’s budget.

President Muhammadu Buhari has lamented the fact that he came into governance at a time when the price of oil has fallen drastically from $140 per barrel to an all-time low $30.

 Buhari wonders why he became President at this trying time
President Buhari who was addressing members of the Nigerian community in the United Kingdom in February said he wished he was president when the price of oil was high as he would have done a lot with a stale economy.


“With the problems we have in this government, I sometimes wonder. At least, this time around, I asked for it, I prayed for it, I went round the country and I asked for it. But the first time under the military, I allowed the military to take decision.

“But I say why me? Why is it that it is when they have spent all the money, when they made the country insecure that I returned?

“Why didn’t I come when the treasury was full? Oil price was over $140 per barrel and when I came, it slipped down to $30. Why me?”

The instability in the price of oil- which is Nigeria’s main export, has affected the economy but this new development is expected to bring optimism to the economy.



source: Naij