The Minister of Finance, Budget and National Planning, Zainab Ahmed, said on Wednesday the Federal Government has proposed the reduction of oil benchmark from $57 to $30 per barrel following the crash in the crude oil price in the international market.
Ahmed, who disclosed this at the end of a meeting between the federal government and the leadership of the National Assembly in Abuja, said the meeting was meant to review the 2020 budget and Medium Term Expenditure Framework, (MTEF) due to the impact of the Coronavirus pandemic on the global economy.
The minister proposed a review of the 2020 budget using a $30 per barrel price benchmark as against $57 proposed by President Muhammadu Buhari in December last year.
She said the move was part of the measures to prepare for the worst-case scenario and insulate the Nigerian economy against any form of unexpected crisis.
Ahmed also told the leadership of the National Assembly that budgeted revenues for the Nigeria Customs Service have been reduced from N1.5 trillion to N943billion “due to anticipated reduction in trade volumes.”
The minister said: “The privatisation proceeds will be cut by 50 percent, based on the adverse economic outlook on sales of the Independent Power Projects and other assets.”“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.”
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