State investment might drop due to falling oil prices

Cameroonian Treasury had envisaged 774,9 billion CFAF (1.18 billion euros) from oil revenues this year, but falling of brent is threatening this forecast and might result in a decrease of the investments planned by the State.

Cameroonian Treasury envisaged 774,9 billion CFAF (1.18 billion euros) from oil revenues this year, essentially from the royalty of the national company of hydrocarbons (SNH) and the corporate income tax.

But brent prices diving risks is antagonizing this forecast, based on the assumption of $89.70 (73.80 euros) per barrel. "The resulting loss of revenue could reduce investments by the State," said Jean Perrial Nyodog, Executive Director of Tradex, the subsidiary of the SNH.

At this point, if the downward trend is continues, there could be the possibility of an amending Finance Act, referred to for the third quarter.