The Minister of Finance and Budget, National Planning, Zainab Ahmed has disclosed that due to the recent pandemic, with 8 cases discovered within the shores of the country.
The economic implications on the Coronavirus outbreak, especially the recent drop in the global price of crude oil from $57 to $30 per barrel largely inspired the changes.
20% will be taken off capital expenditure from the 2020 budget while the recurrent expenditure will have 25% taken off. Read her statement in part below:
“We should cut down on the size of the federally funded upstream projects of the Petroleum sector. The reason being that we want to be able to receive more revenue by less reduction from NNPC.
“The reduction of the crude oil price from $57 per barrel to $30 means that we are going to get so much less revenue, almost 45 percent loss as we planned. And because of that, we have to amend a number of projections in the budget as well as in the MTEF to reflect our current reality.
“We also need to adjust Customs revenue which has been budgeted at N1. 5 trillion but we are adjusting it downwards because we anticipate that trade volumes will reduce and once trade volume is reduced, Customs revenue will be significantly impacted as a result.”