Coronavirus: FG to review 2020 budget oil benchmark to $20pb

Coronavirus: FG to review 2020 budget oil benchmark to $20pb

- The coronavirus pandemic will drastically affect Nigeria's economy

- In fact, the federal government has said that there will be a downward review of the 2020 budget oil benchmark

- The ministry of finance, budget and national planning made it known that there will be a drop from the initial $57 per barrel to $20 per barrel

According to the minister of finance, budget and national planning, Zainab Ahmed, the federal government is almost concluding plans to effect a downward review of oil benchmark to $20 per barrel.

Zainab, according to Reuters, made this known during an online conference. She added that this is a drop from the earlier benchmark $57 per barrel.

She said: “We are in the process of an amendment that is bringing down the revenue indicator to $20 per barrel.”

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The minister also announced that the government is planning to cut oil production to 1.7 million barrels per day (mbpd), against the 2.1 mbpd contained in the 2020 budget.

Other issues discussed at the conference were plans to defer debt service pending when there is an improvement in macro conditions.

Also, a look was taken into the possibility of dropping the estimated net oil and gas revenue available for the Federation Account Allocation Committee (FAAC) distribution by 80%.

Moreover, there will be a drop in the revenue projected for the Nigerian Customs Service (NCS) revenue to N1.2 trillion and a decline in the amount accruable to the federal government from N3.9 trillion to N8.6 trillion.

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Lastly, the Nigerian government is making moves to lend a hand of support to the aviation sector in a bid to help it cope with the harsh impact of the coronavirus.

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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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Source: Legit

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