Africa’s top oil producer is learning to ignore crude prices, Nigeria’s Finance Minister Kemi Adeosun said.
“Yes, it’s at $66-$67 per barrel today, but we’ve been here before, right?” she said Tuesday. “And we can’t afford to be exposed to that, so I really try very hard to ignore the oil price.”
President Muhammadu Buhari submitted in December a 2018 budget based on projected oil output, including condensates, of 2.3 million barrels a day at $45 per barrel.
Nigeria, which derives about two thirds of its revenue from crude, is seeking to diversify its economy. The government’s efforts include pushing for agricultural expansion to reduce a heavy food-import bill and boost exports.
It is also seeking to plug an infrastructure gap of $25 billion, Adeosun said. “The infrastructure gap is significant, it is far bigger than anybody had imagined, in power, in roads, in rail.”
Nigeria’s foreign-exchange reserves have been boosted by the rise in crude prices, combined with an increase of oil shipments and improved investor confidence. Barring any shock, the Central Bank of Nigeria could build its reserves to $60 billion in the next 12 to 18 months, from $40 billion currently, Governor Godwin Emefiele said in an interview Wednesday.