Following the effect of Coronavirus outbreak on global crude oil prices, the federal government is contemplating a review of the 2020 budget, which is based on a benchmark of $57 per barrel.
The crude oil price has recently fallen to $53 per barrel, which puts the nation’s revenue at risk.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, who briefed State House correspondents on the outcome of the Federal Executive Council (FEC) meeting in Abuja on Wednesday, said the government will study the situation before embarking on any cause of action.
She said if necessary, the executive would work with the National Assembly to revise the budget.
Answering questions on the impact of the disease outbreak, she said: “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 benchmark.
“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 revenue is 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 the budget through working together with the National Assembly,” she said.
