FG slashes 2020 budget, reduces oil bench mark

The Federal Government has slashed the 2020 budget estimate from N10.594 trillion to N10.276 trillion (N318bn), and also reduced the oil bench mark from $57 per barrel to $30 per barrel.

The revised budget which has been sent to the National Assembly also contained reduction in oil production volume from 2.17 million barrel to 1.70 million barrel, and the exchange rate increased from N302 to N360 per dollar.

Reports also have it that capital projects across ministries, departments and agencies was reduced by 20% and pegged at N312.82 billion.

Meanwhile, the leadership of the National Assembly, Minister of Finance, Zainab Ahmed, and the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, had met today.

Shortly after the meeting, the Senate President, Ahmad Lawan took to his Twitter handle narrating what happened at the closed door meeting.

He explained that the National Assembly leadership was presented with all the facts regarding the current situation on Nigeria’s crude oil and the amendment being contemplated as regards the MTEF and 2020 budget.

Lawan said, “At the heart of all these facts is the various intervention initiatives of the Federal Government to mitigate the impact of the Coronavirus pandemic on Nigeria.

“I told the presidential committee at the meeting to ensure equity and fairness in the distribution of the stimulus package and to ensure also that all parts of the country is considered in the intervention initiatives.

“We must ensure that there is equity. That there is fairness in the interventions. Every part of this country should have something to ameliorate the situation whether it is Coronavirus infected or not.

The Senate President also tasked the relevant agencies of government to ensure that they streamline their activities along the provisions in the 2020 budget and to avoid needless duplication of projects.

He explained that the Minister of Finance, Budget and National Planning indicated very clearly that the Executive is proposing a N500 billion stimulus package. While this is a very good proposal, he added that it must not duplicate what is already in the 2020 budget.

“So there is the need for the Federal Ministry of Finance and the CBN to have their intervention streamlined in such a manner that what someone loses under the stimulus package of the Federal Ministry of Finance, he gains in the stimulus package of the CBN.

“We must ensure that these Interventions have very clear and definite measurable targets. We shouldn’t just throw money out there and then we don’t see anything because the National Assembly will ensure that it monitors every single Kobo if and when the proposal is endorsed,” he added.