Following the economic impact of the deadly coronavirus, Zainab Ahmed, the minister of finance has hinted that the federal government may be forced to review the approved 2020 budget.
This became necessary as the budget was prepared based on crude oil benchmark of $57 per barrel with a production capacity of 2.1 million barrels per day.
However, since the virus outbreak across countries, the price of crude oil has begun to nosedive.
“We are concerned because it does have an impact on revenue and at the current crude oil price of $53 is below the budget benchmark. What we are doing is that we are studying the situation and when the budget was passed we committed to do a midterm review,” she said.
“We will do the midterm review and if the revenues are so significantly affected, we will have to do some revisions in the budget by way of budget adjustment.
“I will want to inform you that the crude production is now at 2 million barrels per day and in some days it has moved up to 2.1 million barrels per day, so that in itself will be a cushion.
“All the same we are not taking any measures now until we have a reasonable period to make a review and then we may need to make an adjustment of budget through working together with the national assembly.”