by Jenifer Dike………
The Minister of Finance Zainab Ahmed has said that the 2020 budget is being amended to reflect the $20 per barrel oil price.
This move to cut down on Nigeria budget is not unconnected to the current downward slide of crude oil price in the international market due to the coronavirus pandemic which brought about lockdowns.
“We are in the process of an amendment that is bringing down the revenue indicator to $20 per barrel” she said in a web conference about the impact of low oil prices on the country.
There are predictions that Nigeria may slide down into recession post Covid-19 due to this down turn in external earnings. This has also raised concerns if the country can survive another recession in a space of three years.
The Nigerian economy had emerged from a recession in 2017 and was already contending with low growth of around 2 percent before oil prices plummeted. Nigeria is Africa’s top oil exporter and depends on crude sales for around 90 percent of foreign exchange earnings and more than half of government revenue.
Global crude oil prices have plummeted in the last few months. In March, the finance minister said the budget would be cut and the initial assumed oil price of $57 per barrel would be reduced.