Oil Benchmark Increase: CBN Will Respond

The Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, has reacted to the increase in the oil price benchmark in 2013 budget passed by the National Assembly, from $75 proposed by the Executive to $79, saying the CBN will adopt an appropriate monetary stance in response to it.

The National Assembly had on December 20 passed a N4.987 trillion budget for the 2013 fiscal year. The approved budget was N63 billion more than the N4.924 trillion proposed by the executive. The difference arose out of the change in the oil price benchmark from $75 to $79.

Some Nigerians had expressed worry over the oil benchmark increase, particularly because of the volatility of the crude oil market. They felt a high oil benchmark would hurt the economy if there were a sudden slump in crude oil price.