Budgeting: CBN wants independent body to determine benchmark

[DT]

The Central Bank of Nigeria (CBN) yesterday called for the setting up of an independent legal body that will determine the oil benchmark for annual budget in the country.  Such a body should comprise of experts drawn from different fields and devoid of any political affiliations, to prevent annual conflicts between the National Assembly and Executive on the national budget benchmark, the Governor of Central Bank of Nigeria Sanusi Lamido Sanusi said this in Abuja after the Monetary Policy Committee (MPC) meeting.

The National Assembly and the Executive are currently debating what the benchmark for the next budget should be. While the Executive submitted $75 per barrel, the House of Representatives is insisting on $80, while the Senate is suggesting $78.

Sanusi said that members of MPC reaffirmed its support to maintain the $75 per barrel, saying this has become even more critical in the light of evidence that output projection may have been overly optimistic.

He said: "Specifically, the committee called for the setting up of an independent legal structure that set the benchmark output and price underpin by long term projections by independent experts, who are shredded from political interference and interest.

"In this regards, the committee called on the government and the National Assembly, going forward to borrow from the Chilean experience with the regards to setting of parameter for the preparation of the national budget, to avoid the perennial rancor between the executive and legislature on the benchmark oil price."

Daily Trust