There is a huge decline in the revenue of the federal republic of Nigeria with the recent development of the crash in oil prices.
According to the revelation given by the Finance, Budget and National Planning Minister Hajia Zainab Ahmed oil and gas revenue for the country, in the first quarter of 2020 suffered a 31% shortfall, representing about N125.52 billion.
She said: “It is not news any more that these are very difficult and challenging times. We are facing a very significant economic downturn; a time that we have not seen in the history of our country.
“On the economy, COVID-19 has resulted in the collapse in oil prices. This will impact negatively, and the impact has already started showing on the federation’s revenues and on the foreign exchange earnings.
“Net oil and gas revenue and influx to the federation account in the first quarter of 2020 amounted to N940.91billion. This represented a shortfall of N125. 52billion or 31% of the prorated amount that is supposed to have been realized by the end of that first quarter.
Speaking further, the Minister revealed that Nigeria’s Gross Domestic Products (GDP), might shrink this year to -8.94 per cent unless there is an economic stimulus.
“The economic growth in Nigeria, that is the GDP, could in the worst case scenario, contract by as much as –8.94% in 2020.
“But, in the best case, which is the case we are working on, it could be a contraction of –4.4%, if there is no fiscal stimulus. But with the fiscal stimulus plan that we are working on, this contraction can be mitigated and we might end up with a negative –0.59%”, she said.