Crude Oil Benchmark: Federal Government Set To Reduce 2020 Budget

The Federal Government might have to revisit crude oil benchmark price of $53 per barrel used to prepare the 2020 budget.

Naija News learnt that the announcement came on the heels of the crash of crude oil price from $53 per barrel to $31 per barrel.

The Federal Government had last week hinted that its likely to review the N10.59 trillion 2020 budget passed by the National Assembly on December 5 and signed into law on December 17th, 2019 by President Muhammadu Buhari.

Meanwhile, President Buhari has set up a committee, headed by the Minister of Finance, Budget and National Planning, Zainab Ahmed to review the impact of coronavirus on the economy.

Members of the committee are Minister of State Petroleum Resources, Timipre Sylva, and his colleague Minister of State, Budget and National Planning, Clement Agba.

Others are Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mela Kyari.

The committee is to submit its report Tuesday or Wednesday at the Federal Executive Council meeting. Its primary duty is to review the $57 oil benchmark for the budget and ultimately recommend an appropriate size, down from the current N10.59tn.