The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed Wednesday disclosed that the federal government will carry out a mid-term review of the 2020 Budget.
The minister, who gave this indication while addressing State House Correspondents on the outcome of the week’s Federal Executive Council (FEC) meeting, was responding to questions over the effect of the outbreak of the COVID-19 in Nigeria and how it had affected economies across the globe.
The minister said government had also been concerned about the effect it would have on the 2020 budget.
She revealed that there was plan for mid-term review, adding that should the review indicate a significant impact on plans, a revision of the annual budget would be needed.
According to the Minister, the $53 per barrel price of crude oil is below the budget’s benchmark.
She however noted that in some days, the crude production went beyond the 2 million projected in the budget to 2.1 million, thus providing a bit of cushion for the shock for the drop in oil prices.
“We are concerned because it does have an impact on revenue and at the current crude oil price of $53 per barrel is below the budget benchmark. What we are doing is that we are studying the situation and when the budget was passed we committed to do a midterm review.
“We will do the midterm review and if the revenues are so significantly affected, we will have to do some revisions in the budget by way of budget adjustment.
“I will want to inform that the crude production is now at 2 million barrels per day and in some days it has moved up to 2.1 million barrels per day, so that in itself will be a cushion.
“All the same we are not taking any measures now until we have a reasonable period we make a review and then we may need to make an adjustment of budget through working together with the National Assembly,”she said.