Tension in Presidency as oil price crashes

• Finance Minister, CBN governor, FIRS boss, others hold emergency meeting  

There appears to be palpable apprehension in the Presidency as oil price continues to crash in the international market. The crashing crude oil prices threatens the 2020 budget of the administration of President Muhammadu Buhari. The crashing oil price raises risk of revenue shortage to implement the 2020 budget.

The Nigeria Minister of Finance, Budget and National Planning, Zainab Ahmed, the Governor of the Central Bank of Nigeria (CBN) and other heads of revenue generation agencies, on Monday hold emergency meeting at the Ministry of Finance, Abuja,  to evaluate the consequences of the falling crude oil price in the international market on the Nigerian economy.

Report indicated that the meeting being held at the Federal Ministry of Finance in Abuja, was convened by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

Beside the Finance Minister and the CBN Governor, other participants at the meeting include the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, the Chairman of the Federal Inland Revenue Service (FIRS), Mohammed Nami, and the Minister of State for Budget, Clem Agba.

They were said to be considering to review the budget fundamentals based on the falling crude prices.

It was noted that the Organization of Petroleum Exporting Countries (OPEC) failed on Friday,  to reach a consensus with its non-OPEC members on further cut on oil output to strengthen the price.

The price of Brent crude reduced to about $34 a barrel on Monday while the benchmark price in the 2020 budget in Nigeria is $56. The government is facing high risk of budget deficit except the falling price reverses.

Decisions at the meeting which was still in progress at the time this report, are being awaited.