(Ecofin Agency) - The National Assembly has agreed to adopt the N305 to one US$ exchange rate stipulated in the 2017 budget, in spite of fears that it is unrealistic.

Naira currently trades at about N500 in the unofficial market, but the legislators ordered the Central Bank of Nigeria (CBN) to close the gap between the official and black market rates.

The lawmakers gave the order while passing the Medium Term Expenditure Framework (MTEF) for 2017 to 2019 that will form the basis for the 2017 budget which President Muhammadu Buhari presented before a joint session of the national assembly on December 14, 2016.

Buhari had based the planned budget on a benchmark crude oil price of $42.5 per barrel, an oil production estimate of 2.2 million barrels per day, and an average exchange rate of N305 to one US dollar.

The Senate raised the crude oil price benchmark from $42.5 to $44.5 but left the crude oil production estimate level of 2.2 million barrels per day (mbpd), unchanged, BusinessDay reports.

The two legislative chambers of the National Assembly are however expected to commence debate on the N7.3 trillion budget proposal for the 2017 fiscal year, next week.

Anita Fatunji