The Federal Government has proposed the reduction of the oil benchmark in the 2020 Budget from $57 to $30 per barrel, following the crash of crude price in international market.
The move was announced by the Minister of Finance, Mrs Zainab Ahmed, after a meeting between the executive arm of government and the leadership of the National Assembly in Abuja on Wednesday.
She proposed a review of the 2020 budget using a $30 per barrel price benchmark as against $57 initially passed in December by the lawmakers.
Mrs Ahmed noted that the reduction was part of the measures to prepare for the worst-case scenario, adding that it would also insulate the Nigerian economy against any form of unexpected crisis.
The minister informed the leadership of the National Assembly that budgeted revenues for the Nigeria Customs Service have been reduced from N1.5 trn to N943bn “due to anticipated reduction in trade volumes”, adding that the Revenue-related expenditures for the Nigerian National Petroleum Corporation for several projects included in the 2020 Appropriation Act has also been reduced.