The Nigerian Senate has fixed the benchmark price for crude oil in the revised 2020 budget at $28 per barrel.
The targeted daily oil production is now 1.8 million barrels daily, a reduction from the previous 1.94 million barrels per day.
Also, the Medium Term Expenditure Framework and Fiscal Strategy Paper projections to make the basis of the revised 2020 budget was passed by members of the red chamber.
These approvals followed after Solomon Olamilekan, Chairman Senate finance committee gave a report on MTEF AND FSP.
Last month, the Federal Government revised the 10.6 trillion naira 2020 budget passed in 2019 by the National Assembly.
The revised 2020 budget is now about 10.3 trillion naira.
The budget was revised following the shocking outbreak of the pandemic disease that resulted in a drop in the price of crude oil which left a ripple effect on the economy.
According to Zainab Ahmed, the Minister of Finance, Budget, National Planning, a reduction in the size of the budget also results in new expenditures imperative in the response to Coronavirus.
These expenditures were initially not planned for in the previous budget following the reality of the time it was passed.
Ahmed also disclosed that the Federal Government will request for loans to fund the budget.
The Federal Government looks to borrow 850 billion naira from local fronts and another request for a $22.7 billion loan on Tuesday, June 2, by President Muhammadu Buhari.
Both loans have been approved by the Senate and House of Representatives. With two others pending for approval.
The finance manager also disclosed loan requests from the International Monetary Fund (IMF) which has been approved and also, loan requests from Afro EXZIM bank, World Bank, and Islamic Development to fund the budget.
