The Federal Government on Wednesday proposed the reduction of oil benchmark from $57 to $30 per barrel.
The Minister of Finance, Zainab Ahmed, disclosed this after a meeting between the federal government and the leadership of the National Assembly in Abuja.
According to her, the meeting was convened to review the 2020 budget and Medium Term Expenditure Framework, (MTEF) due to the impact of the coronavirus pandemic on the global economy.
The minister proposed a review of the 2020 budget using a $30 per barrel price benchmark as against $57 proposed by President Muhammadu Buhari in December last year.
She said the move was part of measures to prepare for the worst-case scenario and insulate the Nigerian economy against any form of unexpected crisis.
Ahmed also told the leadership of the National Assembly that budgeted revenues for the Nigeria Customs Service have been reduced from N1.5 trillion to N943billion “due to anticipated reduction in trade volumes.”
The Senate President, Ahmad Lawan, had earlier said the meeting was summoned to “discuss the proposed review of the 2020 budget and the MTEF.
The minister said: “The privatisation proceeds will be cut by 50 per cent, based on the adverse economic outlook on sales of the Independent Power Projects and other assets.”
“The Federal Government is working on Fiscal Stimulus Measures to provide fiscal relief for taxpayers and key economic sectors.
“We will incentivise employers to retain and recruit staff during the economic downturn.
“We will stimulate investment in critical infrastructure; review non-essential tax waivers to optimise revenues, and compliment monetary and trade interventions to respond to the crisis.”