FG sets $38 oil benchmark in 2016 expenditure

The federal executive council (FEC) has approved a N6trn expenditure for 2016 in the medium term expenditure framework (MTEF).

Udoma Udoma, minister of budget and national planning, disclosed this to journalists after a meeting of the council presided over by President Muhammadu Buhari on Monday.

Udoma also revealed that an oil benchmark of $38 was being projected for the framework.

The MTEF, which statutorily covers three fiscal years, is a precusor to the appropriation bill, and its approval on Monday means that 2016 budget is well on its way.

The framework is the mould in which the budget will be formed.

The president is yet to send it to the national assembly for approval, but there are indications that he may do so before the year runs out.

The immediate past administration of Goodluck Jonathan had proposed a N4trn expenditure for 2015 in the 2014 MTEF. The oil benchmark at the time was pegged at $78, but was later reviewed to $73.