Nigeria: Govt to Review 2020 Budget

This illustration, created at the Centers for Disease Control and Prevention, reveals ultrastructural morphology exhibited by coronaviruses. The illness caused by this virus has been named coronavirus disease 2019 (COVID-19).
5 March 2020

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed disclosed that the federal government will carry out a mid-term review of the 2020 Budget.

The minister, who gave this indication while addressing State House Correspondents on the outcome of the week's Federal Executive Council (FEC) meeting, was responding to questions over the effect of the outbreak of the COVID-19 in Nigeria and how it had affected economies across the globe.

The minister said government had also been concerned about the effect it would have on the 2020.

She revealed that there was plan for mid-term review, adding that should the review indicate a significant impact on plans, a revision of the annual budget would be needed.

According to the Minister, the $53 per barrel price of crude oil is below the budget's benchmark.

She however noted that in some days, the crude production went beyond the 2 million projected in the budget to 2.1 million, thus providing a bit of cushion for the shock for the drop in oil prices.

"We are concerned because it 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 midterm 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 that the crude production is now at 2 million barrels per day and in some days it has moved up to 2.1 million barrels per day, so 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.

More From: This Day

Don't Miss

AllAfrica publishes around 800 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.