The Federal Government, yesterday, proposed a review of the 2020 budget using a US$30 per barrel price benchmark as against $57 initially passed by the National Assembly.
The Finance Minister, Zainab Ahmed, while speaking at a meeting, which lasted for four hours, with the leadership of the National Assembly, said the review was to prepare for the worst case scenario and insulate the Nigerian economy against any form of unexpected crisis.
The minister, still speaking on the proposed ‘review of the 2020 budget and the Medium Term Expenditure Framework’, said, due to the global economic downturn caused by the impact of the coronavirus pandemic, international oil prices plunged as low as $22 per barrel in the international market and also created a disruption in travel and trade putting increasing pressure on the naira and foreign reserves as the crude oil sales receipts decline and the country’s micro-economic outlook worsens.
According to her, the budgeted revenues for the Nigeria Customs Service had been reduced from N1.5 trillion to N943 billion, cuts to revenue-related expenditures projects for the Nigerian National Petroleum Corporation and privatization proceeds cut by 50% due to anticipated reduction in trade volumes and the adverse economic outlook on sales of the Independent Power Projects (IPPs) and other assets.
“The Federal Government is working on Fiscal Stimulus Measures to provide fiscal relief for Taxpayers and key economic sectors; incentives employers to retain and recruit staff during the economic downturn; stimulate investment in critical infrastructure; review non-essential tax waivers to optimize revenues; and compliment monetary and trade interventions to respond to the crisis”. The minister said.
She added that the government had made provision for health sector interventions by introducing import duty waivers for essential input for pharmaceutical firms; tax waivers on new equipment and deferment of tax to increase production.
Meanwhile, the minister said the government would release N6.5 billion to the National Centre for Disease Control,N10 billion to Lagos State Government and N1 billion to pharmaceutical firms in the country, as interventions to fight the spread of COVID-19 in the country. The Senate President, Ahmed Lawan, also added that Nigeria had received US$18.2 million grant from Japan to strengthen seven NCDC centres across the country.
