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Investment
adviser, Wale Adebayo, has called on the government to guarantee Nigeria's oil
revenue by hedging the country's crude production. The best way to guarantee
the revenue, based on the budget benchmark of $75 per barrel for 2012, is for
the government to hedge the crude oil production at the budget benchmark, he
said.
According to Mr Adebayo, the MD/CEO of Nissi-Lloyds Capital and Investment LLC, given the current market price of over $100 per barrel, there is need for the Nigerian government to act swiftly and consider starting a hedging program for our crude oil production. He said: "At the current price, we can get the hedging done much cheaper than we would if the price were to fall. The Nigeria government can also consider hedging in parts - for example 40% to 50% of daily productions like some other oil producing countries." He added that this has to be done urgently given the current downward trend in the global commodity price .
Source: NogIntelligence
According to Mr Adebayo, the MD/CEO of Nissi-Lloyds Capital and Investment LLC, given the current market price of over $100 per barrel, there is need for the Nigerian government to act swiftly and consider starting a hedging program for our crude oil production. He said: "At the current price, we can get the hedging done much cheaper than we would if the price were to fall. The Nigeria government can also consider hedging in parts - for example 40% to 50% of daily productions like some other oil producing countries." He added that this has to be done urgently given the current downward trend in the global commodity price .
Source: NogIntelligence
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