Nigeria’s Senate passed the government’s medium-term expenditure framework for 2018-2020 on Tuesday, raising its oil price assumption to $47 from $45 per barrel, Reuters reports.
The document, which the government agreed upon in August before sending it to lawmakers for approval, is the framework used to prepare the country’s budget.
Aside from the oil price assumption, all other details contained in the document were kept the same by the lawmakers in the upper house of parliament. It must also be passed by the lower chamber before being applied to spending plans.
Nigeria is Africa’s biggest oil producer and crude oil sales make up two-thirds of government revenue. In the second quarter Nigeria emerged from its first recession in 25 years which was largely caused by low oil prices and militant attacks in the Niger Delta energy heartlands.
The budget framework projects crude production of 2.3 million barrels per day for next year. It also forecasts growth of 3.5 percent for next year, rising to 4.5 percent by 2019 and 7 percent by 2020.