Nigeria Plans Budget Review After Covid-19 Hits Oil Prices

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXMPEB4608E_M.jpg
© Reuters. Nigeria Plans Budget Review After Covid-19 Hits Oil Prices© Reuters. Nigeria Plans Budget Review After Covid-19 Hits Oil Prices

(Bloomberg) — Nigeria may have to adjust its budget this year after fears of coronavirus pandemic dragged the price of crude under the target set in its 2020 spending plan.

“The current price of $53 a barrel is below the budget benchmark. So what we are doing is studying the situation. We are committed to doing a midterm review,” Zainab Ahmed, Nigeria’s Minister of Finance told reporters in Abuja, the nation’s capital.

Nigerian President Muhammadu Buhari signed the country’s 10.6 trillion naira ($29 billion) spending plan into law this year based on an crude price projection of $57 a barrel and targeted oil earnings of 2.64 trillion naira. prices are down about 22% this year.

Africa’s largest oil producer relies on earnings from the black commodity for about 50% to 60% of its income and more than 90% of its export revenues.

The International Monetary Fund slashed the West African nation’s economic growth projection to 2% from 2.5% because of a decline in oil prices.

“We are not taking any measures now until we have a reasonable period within which we make a review and then we may need to do an adjustment to the budget through working together with the National Assembly,” she said.

(Adds projected oil earnings to third paragraph)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.