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Budget:Experts Differ On Crude Oil Benchmark

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Some financial experts have expressed mixed reactions to the advice by the IMF that crude oil price benchmark used for 2013 budget should not be increased above 75 dollars per barrel.

Our correspondent reports that the revenue projects for the 2013 budget was based on 75 dollars per barrel.

This has caused some disagreement between the executive arm and legislature with the National Assembly insisting that the benchmark be reviewed upward.

The IMF Senior Resident Representative in Nigeria, Mr Scot Rogers, last week cautioned Nigeria against increasing the 2013 oil benchmark above the 75 dollars per barrel.

IMF said that Nigeria needed to reduce spending to avoid putting pressure on the economy.

While some experts said the crude oil price benchmark was low, others said that they supported the position of the IMF not to review the benchmark up.

Mr Henry Boyo, an economist, said that the nation had experienced unfettered inflation, increased debt accumulation and high unemployment because of conservative budget planning.

Boyo, who is the Chief Executive Officer of Abel & Sell Nig. Ltd, said that in the last three years budget benchmark were conservatively calculated below 25 per cent of the actual average.

“In spite of the actual reality of average crude prices over 100 dollars per barrel in 2012, domestic borrowings in excess of N720 billion was induced by conservative crude oil benchmark.

“This obtuse fiscal strategy has increased national debt accumulation as our consolidated national debt of over N8 trillion is now more than our current reserve base of about 40 billion dollars,”he said.

Mr Okeowo Oderinde, a former Chairman of Ikeja District of Institute of Chartered Accountants of Nigeria, said that the government benchmark was in order.

Oderinde said that the government adopted the position to ensure effective fiscal management to cushion against the unexpected developments in the international market.

He said that raising the crude oil price benchmark should not be an issue for the IMF, but for Nigerians.

Oderinde said that what the country needed was good governance especially if the price fell at the international market.

He, however, warned government of frivolous spending, adding that there was a development in 1985 when crude oil price fell below the benchmark.

Oderinde said that country then did not feel the price difference because of good leadership and accountability.

The Managing Director, Partnership Investment Company, Mr Victor Ogiemwonyi, said that the IMF’s warning was very apt.

Ogiemwonyi said that inflation rate at 11.3 per cent not good for any economy.

He said that a very high oil price benchmark would mean high revenue projections which would mean bigger spending for the nation.

Ogiemwonyi also said that an increase in oil benchmark would also stoke up inflation, which would consequently result to higher interest and exchange rates.

He said that these would affect the economy negatively, adding that there was even the problem of gloal recession.

Ogiemwonyi said that a higher price benchmark would lead to bigger deficit in budget projections.

He, however, suggested that there was the need to take a conservative position on oil price benchmark for the budget to be more realistic.

Ogiemwonyi pointed out that there was no point in projecting higher revenue that would not be realised.

The Managing Director of APT Securities and Funds Ltd., Malam Garba Kurfi, said that “a situation where Federal Government was floating bonds to meet recurrent expenditure was not good for the nation”.

Kurfi said that the nation’s inflation rate was still very high at 11.3 per cent, adding that other frontier markets like Ghana and Morocco were already having single digit inflation rate.

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NPA Assures On Staff Welfare 

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The Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, has said the management will continue to accompany its port infrastructure  and equipment  modernization drive  with the development of the welfare of its personnel.
Dantsoho made the disclosure recently while responding to the commendation by the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASGOC) on the  clearing  of the age-long problem of employee stagnation, when the union paid him a courtesy visit at the Authority’s headquarters in Lagos.
A Statement by NPA’s General Manager Corporate & Strategic Communications, Mr. Ikechukwu Onyemekara, quoted Dantsoho as saying,  “our Port infrastructure and equipment modernization drive will go hand-in-hand with continuous staff welfare improvement”.
The NPA MD disclosed that human capital development constitutes the key strategy for creating and sustaining superior performance under his watch, adding that “talent development constitutes a critical success factor for the actualization of the big hairy audacious goals we have set for ourselves especially in the area of Port competitiveness.
“The only way we can meet and indeed exceed stakeholders’ expectations is to deepen the competencies of our human resources assets and boosting their morale.”
Speaking further, Dantsoho commended the Honourable Minister of Marine & Blue Economy, Adegboyega Oyetola, for approving the strategic proposal of the Dantsoho-led Management team that solved the over a decade-long problem of lack of promotion that had fuelled industrial disharmony.
“I must specially appreciate our amiable Minister for graciously approving the multi-pronged stratagem we deployed that cleared all outstanding cases of employee stagnation by conducting examinations in one fell swoop and instituted timelines to forestall a recurrence of such anomaly”, he sad.
Speaking on behalf of the joint maritime labour unions, the President  of Senior Staff Association of Statutory Corporations & Government-Owned Companies (SSASCGOC), Comrade Bodunde stated, “In addition to clearance of the backlog of stagnated promotions, we also wish to express our appreciation for the increase in productivity bonuses, provision of end-of-year welfare packages for staff, and the revision of the Financial Guide to the Condition of Service, which now addresses our members’ concerns about inflationary pressures.”
Nkpemenyie Mcdominic, Lagos
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ANLCA Chieftain Emerges FELCBA’s VP

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National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Elder Olumide Fakanlu, has been elected Vice President of the Federation of ECOWAS Licensed Customs Brokers Association (FELCBA).
The election took place during the FELCBA Congress, held from Tuesday, June 17th to Thursday, June 19th, 2025, in Freetown, Sierra Leone.
Fakanlu’s emergence as Vice President marks a significant achievement for Nigeria within the regional customs brokerage community.
Apart from Fakanlu, Secretary of the Seme Chapter of ANLCA, Austin Nwosu, was also elected, securing the role of Secretary of Relations with Institutions.
The Nigerian delegation played an active role in the congress, with Michael Ebeatu nominated as a member of the electoral officer team, ensuring a fair and transparent election process.
The three-day congress concluded with delegates undertaking a visit to the Sierra Leone Port, offering insights into the host nation’s maritime operations, followed by a recreational trip to the Tokeh Beach.
The newly elected executives are expected to lead FELCBA in its efforts to harmonize customs brokerage practices, promote trade facilitation, and advocate for the interests of licensed customs brokers across the ECOWAS sub-region.
Nkpemenyie Mcdominic, Lagos
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NSC, Police Boost Partnership On Port Enforcement 

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In a bid to enhance more enforcement in the nation’s Port, the Nigerian Shippers’ Council (NSC) has reaffirmed its commitment to stronger inter-agency collaboration with the Nigeria Police Force (NPF).
The Council said the collaboration is aimed at enhancing stronger enforcement, compliance and improve operational efficiency across Nigeria’s ports.
Executive Secretary/Chief Executive Officer of  NSC, Dr. Pius Akutah, made this known during a visit to the  Inspector-General of Police, Dr. Kayode Adeolu Egbetokun, at the Force Headquarters, Abuja.
The visit, which he said, focused on strengthening institutional synergy, comes in the wake of growing responsibilities for the NSC under the newly created Ministry of Marine and Blue Economy.
Akutah emphasized the critical role of security agencies in supporting port operations and ensuring regulatory compliance.
He called for the posting of police officers to assist the Council’s monitoring and enforcement teams at key port locations including Lagos, Warri, Onne, Port Harcourt, and Calabar.
“The posting will complement the activities of our revived task teams and enhance our ability to enforce standards across the maritime logistics chain”, he said.
Earlier, the Inspector-General of Police, Dr. Egbetokun, assured the Council of the Force’s readiness to continue supporting the growth of the maritime sector.
The IGP acknowledged that compliance enforcement is essential to the successful implementation of Nigeria’s Blue Economy objectives.
“The NSC and NPF are expected to deepen collaboration in the months ahead, with a shared focus on building a secure, efficient, and competitive port environment”, to the IGP emphasized.
Chinedu Wosu
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