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Nigeria Plans Budget Cuts as Oil Price Drop Erodes Revenue

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Nigeria is planning spending cutbacks next year as falling oil prices eat into the government’s revenue, Finance Minister Ngozi Okonjo-Iweala said.

The minister will propose to lower expenditure by 6 percent to 4.66 trillion naira ($27 billion) in the 2015 budget by tightening rules on foreign travel and raising taxes on private jets and luxury cars, Okonjo-Iweala told reporters yesterday in the capital, Abuja. Those plans are based on a benchmark oil price of $73 a barrel, down from $77.5 in this year’s budget, she said.