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Govt plans budget review as Covid 19 takes toll on oil prices

Minister-of-Finance-Zainab-Ahmed

Zainab Ahmed, the Minister of Finance and Budget Planning, Wednesday said the Federal Government intended to review Nigeria’s 2020 budget in the light of shrinking oil receipts triggered by global effects of the Coronavirus epidemic.

She went further to say the mid-term review was intended to decide the way forward.

“We are concerned about the current drop in oil price because it’s now below our budget.

“We will do a mid-term review, and if the impact is so much, we will need to do an adjustment in the budget, working together with the National Assembly,” Mrs Ahmed told journalists in Abuja in the wake of the Federal Executive Council (FEC) meeting.

Read also: FIRS targets N4trn revenue from oil and gas in 2020

Nigeria’s 2020 budget has an oil benchmark of $57 per barrel but the Brent Crude as of 05:20 West African Time (WAT) on Thursday was $51.85 per barrel.

The Finance Minister observed that an increase in daily oil output beyond the budgeted 2 million barrels could generate greater income to buffer the shortfall.

“I am glad to inform you that our oil production as of today is two million barrels per day and at times slightly higher like 2.1 million. That in its self will be a cushioning effect for us in the current oil price,” Ahmed said.

Ronald Adamolekun

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

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