Nigeria’s Federal Government has sent a newly revised budget proposal to the National Assembly for approval as a result of the economic impact of Coronavirus pandemic.
The proposal to the National Assembly saw the budget being reduced from N10.594 trillion to N10.276 trillion.
According to reports, the budget reduced the oil benchmark from $57 per barrel to $30 per barrel while the oil production volume was reduced from 2.17 million barrel to 1.70 million barrel.
The exchange rate increased from N305 to N360 to a dollar.
Zainab Ahmed, the minister for finance, budget and national planning, is consulting the national assembly for the revisions to be made to the 2020 budget.
Ahmed is currently in a meeting with the leadership of the national assembly with Clem Agba, the minister of state for budget and national planning; and Ben Akabueze, the director-general of the Budget Office.
A drop in crude oil prices and weakened demand as a result of the COVID-19 pandemic necessitated a revision of the appropriation act.
“Presidential Fiscal Stimulus Committee members led by Minister @ZShamsuna at the National Assembly on a consultative meeting with the leaders of @nassnigeria. Discussions include #Covid19 measures, oil decline & Nigerian budget review amongst others,” a post on the official Twitter handle of the ministry read.
“We have similarly had to adjust downwards our non-oil revenue projections including various tax and customs receipts, as well as proceeds of privatisation exercises,” she had said on Monday while announcing the COVID-19 economic stimulus package.
“In this regard, the Budget Office is currently working on a revised 2020 – 2022 Medium-Term Expenditure Framework / Fiscal Strategy Paper (‘MTEF/FSP’) as well as an Amendment to the 2020 Appropriation Act.”
Any revisions to the 2020 budget would have to be approved by the national assembly.