SAN FRANCISCO, May 06, (THEWILL) – The Federal Government has revised its earlier forecast of 2.9% growth for the nation’s economy saying rather, the economy will contract by 3.4%.
Reuters quoted the Director-General of the Budget Office, Ben Akabueze, as giving this hint during a web conference about the impact of low oil prices on the nation’s economy.
He explained that given the lingering COVID-19-triggered crisis in the global economic system, Nigeria’s oil revenues were expected to fall by more than 80%.
Akabueze also predicted that said debt servicing costs would rise by N200 billion this fiscal year.
ALSO READ: COVID-19: Experts Optimistic On Oil Price Rise But Warn That Reforms…
In the same vein, Minister of Finance, Budget and National Planning, Zainab Ahmed confirmed plans by the government to further cut 2020 budget oil price benchmark to $20 per barrel, down by $10 per barrel slash from the March 18 adjusted price.
“We’re in the process of an amendment that is bringing down the revenue indicator to $20 per barrel,” Ahmed said.
She said ongoing Nigerian oil and gas projects would be “delivered much later than originally planned” due to oil and gas upstream sector’s budget cuts.
About the Author
