Nigeria mulls $30 oil benchmark, earmarks N6.5bn to save economy

Isola Moses | ConsumerConnect

In view of a recent drop in the crude price in the international oil market and its attendant socio-economic effects on the nation’s economy, the Federal Government has proposed a review of Budget 2020, using a US$30 per barrel price benchmark as against $57 initially passed by the National Assembly (NASS).

Agency report says Mrs. Zainab Ahmed, Minister for Finance, Budget and National Planning, stated this in a meeting with the leadership of NASS.

Daily Trust reports Ahmed stated that the review was to prepare for the worst case scenario, as well as insulate the Nigerian economy against any form of unexpected crisis.

The meeting, which lasted almost four hours, according to Senate President Ahmad Lawan, was summoned to “discuss the proposed review of the 2020 budget and the Medium Term Expenditure Framework.”

The Minister was quoted to have said that due to the global economic downturn precipitated by the impact of the Coronavirus pandemic, international oil prices plunged as low as $22 (USD) per barrel on the international market.

Meanwhile, Ahmed has stated that the Federal Government would be releasing a sum of N6.5 billion to the Nigeria Centre for Disease Control (NCDC) as intervention to fight the spread of Coronavirus in Nigeria.

According to her, the intervention fund would be released in two tranches of N1.5 billion and N5 billion respectively.

Nigeria had received a grant of US$18.2 million from Japan for strengthening seven NCDC centres across the country, she stated.

She also said that the Lagos State Government would receive financial support from the Federal Government, about N10 billion to combat Coronavirus spread in the state.

Kindly Share This Story