President Muhammadu Buhari has set up a special committee to immediately look into the effects of coronavirus COVID 19 on the price of oil, with a view to reviewing the crude oil benchmark of the 2020 budget.
Minister of Finance, Budget and National Planning, Zainab Ahmed disclosed this to State House Correspondents on Monday.
The Minister said the committee is expected to submit its report to the President latest on Wednesday, March 11.
She said: “We just met with the President to discuss on the impact of the coronavirus on our economy. The President has formed us into a committee, with the Minister of State for Petroleum Resources, the Central Bank Governor, the Group Managing Director (GMD) Nigeria National Petroleum Corporation NNPC as members. I am to serve as the Chairman of the committee
“Our mandate is to make a very quick assessment of the impact of this coronavirus on the economy especially as it affects the crude oil price.
“We will be writing a report and present to the President tomorrow or Wednesday morning and after that, we will also have more substantial information for the Press.”
She, however, said in view of the situation, Nigeria will have to lower its oil price benchmark but the committee will advise the government on the modalities for that.
“It is very clear that we will have to revisit the crude oil benchmark price that we have $57 per barrel and lower the price.
“Where it will be lowered to is the subject of the work of this committee and what the impact will be on that is that there will be reduced revenues to the budget and it will mean cutting the size of the budget.
“The quantum of the cut is what we are supposed to assess as a committee. So, this is just an initial update to inform you of the directive that we have and subsequently, we will be briefing the Press on the actions that will be taken,” she explained.
Minister of State-Petroleum Resources, Timipre Sylva said in the coming days when all oil-producing nations begin to see the effect of the reduction of oil prices, OPEC might meet again and reconsider its position on cutting production.
Source: VON
