By Our Reporter
Following the impact of coronavirus on the world oil price, a review of the N10.594 trillion 2020 budget of the Federal Government is imminent.
Minister of Finance and National Planning, Mr. Zainab Ahmed made this known after the Federal Executive Council (FEC) meeting on Wednesday in Abuja.
China which is the world’s largest consumer of oil has reduced its consumption significantly because its industries have stopped production.
According to Ahmed, the $53 per barrel that the crude currently sells had fallen below the budget’s $57 benchmark. She however noted that when the crude production goes beyond the two million projected, there is a bit of cushion for the shock of the COVID-19 effect.
“We are concerned because it COVID-19 does have an impact on revenue and at the current crude oil price of $53 per barrel is below the budget bench mark. What we are doing is that we are studying the situation and when the budget was passed we committed to do a midterm review.
“We will do the mid term review and if the revenues are so significantly affected, we will have to do some revisions in the budget by way of budget adjustment.
“I will want to inform you that the crude production is now at 2 million barrels per day and on some days, it moves up to 2.1 million barrels per day. That in itself will be a cushion.
“All the same we are not taking any measures now until we have a reasonable period we make a review and then we may need to make an adjustment of budget through working together with the National Assembly”, she said.
