Home BUSINESS BANKING & FINANCE Falling Oil Prices: Nigeria Cuts 2020 Budget To N10.276 Trillion

Falling Oil Prices: Nigeria Cuts 2020 Budget To N10.276 Trillion

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The Federal Government has cut the 2020 budget by N318 billion and sent it to the National Assembly for approval.

The government decided to reduce the budget estimate from N10.594 trillion to N10.276 trillion as a result of falling oil prices and the ravaging coronavirus that has curtailed economic activities globally.

It will be recalled that the federal government had earlier reduced the oil bench mark from $57 per barrel to $30 per barrel, as the oil production volume was dropped from 2.17 million barrel to 1.70 million barrel.

The exchange rate was increased from N305 to N360 per dollar. It was learnt that capital projects across ministries, departments and agencies have been reduced by 20 per cent and pegged at N312.82 billion.

Meanwhile, the leadership of the National Assembly, Minister of Finance, Zainab Ahmed, and the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, had a close door meeting .

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Shortly after the meeting, the Senate President, Ahmad Lawan took to his Twitter handle stating what happened at the closed door meeting.

He said that the National Assembly leadership was presented with all the facts regarding the  current situation on Nigeria’s crude oil and the amendment being contemplated as regards the MTEF and 2020 budget.

Lawan said: “At the heart of all these facts are the various intervention initiatives of the Federal Government to mitigate the impact of the Coronavirus pandemic on Nigeria.”

Source: Business News Report

Editorial staff
Editorial Staff at Greenbarge Reporters is member of a team of journalists led by Editor-in-Chief, Yusuf Ozi Usman.

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