- The federal government says the coronavirus pandemic has resulted in a 65% decline in projected net revenue from oil
- This was disclosed by finance minister, Hajia Zainab Ahmed, adding that the impact of COVID-19 caused a deficit from the oil and gas sector
- The minister also noted that these challenges are still being anticipated in the 3rd quarter of 2020 fiscal year
Zainab Ahmed, the minister of finance, budget and national planning, has disclosed that the COVID-19 pandemic resulted in about a 65% decline in projected net revenues from the oil and gas sector.
Ahmed who revealed this on Sunday, July 19, at a seminar on capacity building for special advisors and technical assistants of the ministers, added that the deficit was in the first half of 2020 fiscal year, Daily Trust reports.
As Nigeria faces a looming economic crisis, Ahmed went on to note that these challenges are still being anticipated in the 3rd quarter.
Speaking on the impact of COVID-19, the minister said the pandemic caused the lockdown of economy, lay-offs across most sectors, loss of income, and a drop in average household purchasing power.
While lamenting that the economy is largely dependent on oil revenue and foreign exchange earnings, Ahmed said the management of resources has to contend with a high debt service ratio, a weak infrastructure base, and low human capital development indices.
She said: “What began as a health crisis has quickly snowballed into a global economic crisis, and the effects have been swift and far-reaching, and Nigeria has not been insulated from this.”
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Earlier, Legit.ng reported that the minister of finance, budget, and national planning disclosed that the decline in oil revenue due to the hard-hitting effect of coronavirus has posed a great threat to the economy.
Addressing journalists in Abuja on Monday, April 6, the finance minister said the impact of the tumble in oil price globally has really brought a damning effect on Nigeria's economy.
As Nigeria faces a looming economic crisis, Hajia Ahmed said the country will not like "to sit down and assume that we know what you want."
The finance minister, who lamented the impact of Covid-19 on each sector of the economy, said the pandemic will have an impact on economy-related sectors of the country.
Oil price crash: What does this mean for Nigeria? | Legit TV