COVID-19: Nigeria reduces 2020 budget, slashes N312bn off capital projects

Zainab Ahmed

By SINL Reporter

The Nigerian government has slashed N312 billion from projects approved in the 2020 budget.

This followed reduced revenue and oil prices as a result of the COVID-19 pandemic.

According to TheCable report on Wednesday, the document showed that the amount represents a cut of 20% off capital projects.

Other proposed changes to the budget include a reduction of the budget oil production volume from 2.18 million barrels per day to 1.70 million barrels.

The projected budget benchmark price from $57 per barrel to $30.

The exchange rate was also adjusted from N305/$ to N360/$.

The projected oil revenue was reviewed downward from N7.67 trillion to N1.44 trillion.

The net non-oil revenue was also projected downward from N6.442 trillion to N5.84 trillion with corporate tax and value-added tax expected to contribute N1.822 trillion and N.164 trillion down from the original N1.836 and 2.25 trillion respectively.

Funds to be distributed to the three tiers of government from the federations account is expected to dip from N8.5 trillion to N3.12 trillion.

New borrowings by the government was adjusted from N1.59 trillion to N4.43 trillion with incremental borrowing projected at N2.84 trillion.

Source: TheCable

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