29.5 C
Abuja
Monday, June 1, 2020

FG cuts oil benchmark to $30 per barrel for Budget 2020

Must Read

FG reduces petrol pump price to N121.50

  The Petroleum Products Pricing Regulatory Agency has announced a new pump price band of N121.50 per litre for Premium...

CBN Report: Economy contracted in May, manufacturing worst hit

  The Central Bank of Nigeria (CBN) has released its report on the economy indicating that the nation's manufacturing sector contracted. It...

U.S says foreign enemies taking advantage of divide over race,

  U.S National security adviser Robert O’Brien has said that foreign powers were trying to exploit the fraught state of...

The Federal Government on Wednesday proposed the reduction of oil benchmark from $57 to $30 per barrel which it projected  for 2020 Finance Act.

The Minister of Finance, Zainab Ahmed, disclosed this after a meeting between the executive arm of government and the leadership of the National Assembly in Abuja.

Minister of finance with the NASS members

 

The meeting had reviewed the 2020 budget and Medium Term Expenditure Framework, particularly against the background of the impact of the Coronavirus pandemic on the global economy.


The meeting which lasted about four hours was called to discuss the proposed review of the 2020 budget and the Medium Term Expenditure Framework.

The Minister had proposed a review of the 2020 budget using a $30 per barrel price benchmark as against $57 initially passed in December by the National Assembly.


She said it was part of the measures to prepare for the worst-case scenario  as well as insulate the Nigerian economy against any form of “unexpected crisis”.

She said the projected revenue for the Nigeria Customs Service has been reduced from N1.5 trillion  to N943billion as a result of anticipated reduction in trade volumes.

“The privatisation proceeds will be cut by 50 per cent, based on the adverse economic outlook on sales of the Independent Power Projects and other assets.”

Ahmed said the Federal Government had undertaken cuts to revenue-related expenditures for the Nigerian National Petroleum Corporation for several projects included in the 2020 Appropriation Act passed by the National Assembly in December 2019.

“The Federal Government is working on Fiscal Stimulus Measures to provide fiscal relief for taxpayers and key economic sectors.

“We will incentivise employers to retain and recruit staff during the economic downturn.


“We will stimulate investment in critical infrastructure; review non-essential tax waivers to optimise revenues, and compliment monetary and trade interventions to respond to the crisis,” the minister said.

- Advertisement -
- Advertisement -

3 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

- Advertisement -

Latest News

FG reduces petrol pump price to N121.50

  The Petroleum Products Pricing Regulatory Agency has announced a new pump price band of N121.50 per litre for Premium...

CBN Report: Economy contracted in May, manufacturing worst hit

  The Central Bank of Nigeria (CBN) has released its report on the economy indicating that the nation's manufacturing sector contracted. It is the first time after...

U.S says foreign enemies taking advantage of divide over race,

  U.S National security adviser Robert O’Brien has said that foreign powers were trying to exploit the fraught state of U.S. race relations and protests...

Abia Gov. Ikpeazu feels unwell, shuns public engagements 

  Abia State Governor, Dr Okezie  Ikpeazu, is reported to be feeling "unwell" in the last few days, PerSecondnews learnt.     According to sources close to the Government...

For Second Straight Day, Nigeria Surpasses 300 New Cases of Coronavirus

  The number of new confirmed coronavirus cases in Nigeria surpassed 300 for the second consecutive day on Sunday and the number of deaths increased...

More Articles Like This

- Advertisement -