- There is no doubt that the spread of coronavirus is having a very negative effect on the world's economy
- Bringing this home, follwing the crash of oil prices globally, the federal government is proposing to slash the 2020 budget by N312 billion
- Moreover, the government is seeking to increase the exchange rate to N360 per dollar
The federal government of Nigeria has been forced to slash the 2020 budget by N312 billion following the the crash of crude oil prices in the global market due to coronavirus.
The 2020 budget has now been cut from the initial N10, 594, 362,364,80 to N10,276, 887,197,728, The Nation reports.
However, this decision by the executive arm of the federal government is subject to the approval of the legislature.
The proposal by President Muhammadu Buhari seeks to cut in the oil bench mark from $57 per barrel to $30 per barrel and reduce the daily production of oil from 2.8 million per barrel to 1.70 million.
Even more, the executive is also mulling over the increment of the exchange rate from N305 to N360 to the dollar.
Meanwhile, Legit.ng reported that the presidential committee on the impact of the coronavirus on Nigeria’s economy had disclosed that the Nigerian economy was facing serious challenges due to the COVID-19 pandemic.
The committee made the disclosure on Thursday, April 2, after a meeting with President Buhari in Abuja where the president was briefed on current happenings around the world due to COVID-19 and its impact on the country’s economy.
Timipre Sylva, the minister of state for petroleum resources, who is also a member of the committee, said the Nigerian economy was not in the best shape due to falling oil prices caused by the coronavirus pandemic.
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The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, who is also a member of the committee, said the coronavirus had impacted the global economy and may even lead to recession globally.
The president had charged the ministry of finance budget and national planning to ensure that Nigerian civil servants get their salaries paid promptly.
The president gave the directive on Thursday, April 2, during a meeting with members of the presidential committee on the review of the impact of the novel coronavirus (COVID-19) pandemic on the economy, held at the State House, Abuja.
Legit.ng gathered that while recapping details of the meeting to State House correspondents after the meeting, the chairman of the committee and minister of finance, budget and national planning, Zainab Ahmed, also said the president further directed that measures to protect the poor and the vulnerable are put in place.
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