LCCI Supports $78 Per Barrel Oil Price Benchmark

The Lagos Chamber of Commerce and Industry (LCCI) has lent it support to 78 dollars per barrel oil price benchmark for the 2013 Federal Government budget.
Mr Goodie Ibru, President of LCCI, disclosed this position at the chamber’s third quarter press conference on the review of the economy on Wednesday in Lagos.
The News Agency of Nigeria (NAN) reports that the Senate of the National Assembly had on Tuesday approved 78 dollars per barrel benchmark for the 2013 budget.

The Lagos Chamber of Commerce and Industry (LCCI) has lent it support to 78 dollars per barrel oil price benchmark for the 2013 Federal Government budget.
Mr Goodie Ibru, President of LCCI, disclosed this position at the chamber’s third quarter press conference on the review of the economy on Wednesday in Lagos.
The News Agency of Nigeria (NAN) reports that the Senate of the National Assembly had on Tuesday approved 78 dollars per barrel benchmark for the 2013 budget.
President Goodluck Jonathan had earlier announced government’s position to benchmark crude oil revenue on 75 dollars per barrel in 2013 while presenting the budget proposals to the National Assembly.
Ibru advised that crude oil revenue should be benchmarked at 78 dollars per barrel, describing the positiion as “relatively conservative”.
“We decided to support the figure that is conservative in other to promote trade and encourage more utilisation of oil,’’ he said.
According to him, if the price is on the high side it will send wrong signals to the international market and that can result in poor demand and drop in revenue.
He said that such development would invariably have long-term impact on the economy that depended largely on crude.
He listed factors for low demand in crude oil to include the continued weakness of advanced
economies like Europe and U.S, adding that the spillover was gradually affecting other emerging markets.
According to him, the Euro zone is in recession as growth declined by 0.5 per cent in the third quarter of the year.
“ Most of these countries are the major importers of our crude, If not carefully handled it could affect our revenue base,” he said.
The chamber president suggested that the 2013 budget should be judiciously implemented to cushion the likely impact of flooding on the agriculture and real sectors.
He listed other challenges to include insecurity, delay in cargo clearance at the sea ports, and high inventory of finished goods.
Ibru urged the Federal and State Governments to be more committed to the policy of encouraging patronage of  “Made-in-Nigeria” goods.