June 22, 2024

Budget of Renewed Hope 2024: President Tinubu proposes $77.96bpd oil price benchmark, 1.78mbpd production estimate

Oredola Adeola

President Bola Tinubu, in his inaugural full-year budget since taking office in May, has proposed a conservative oil price benchmark of $77.96 per barrel and a daily oil production estimate of 1.78 million barrels for the 2024 Appropriation Bill, themed the Budget of Renewed Hope.


This was revealed during his presentation of the 2024 appropriation bill before a joint session of the National Assembly in Abuja on Wednesday.


Earlier on Monday, the Federal Executive Council (FEC) approved the sum of N27.5 trillion for the 2024 budget.


The proposed oil price and production estimates are higher than crude oil price benchmark of $75 per barrel and production projection of 1.69 million barrels per day in the 2023 budget.


President Tinubu’s ambitious projections are based on the gains made from the aggressive clampdown on crude oil theft and the resumption of production across all crude oil fields.


The administration aims to finance the 2024 budget with the expectation that Brent oil prices could reach $100 per barrel in the coming year.



President Tinubu has therefore emphasised that a critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future.


He said, “The proposed Budget seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.


“Emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation and other sectors.


“This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources. By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.


“As we approach COP 28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition.


“It is imperative that we seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.


“Together, we will strive for Nigeria to emerge from COP 28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship,” President Tinubu said.


President Tinubu therefore emphasised that his administration is exploring Public Private Partnership arrangements to finance critical infrastructure.


He therefore encouraged the private sector to partner with his administration to ensure that the country’s fiscal, trade and monetary policies, as well as our developmental programs and projects succeed in unlocking the latent potential of people and other natural endowments, in line with our national aspirations.