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FG mulls cutting oil benchmark to $30 per barrel

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FEDERAL Government is mulling a reduction of the benchmark used adopted projected oil earnings in the 2020 budget to $30 per barrel.

 This represents about 60 percent slash from $57 on which national revenue from crude oil was predicated in the fiscal year.

Federal Minister of Finance, Zainab Ahmed, announced this yesterday after a meeting between the executive arm of government and the leadership of National Assembly in Abuja.

According to Ahmed, the meeting was convened to review the 2020 budget and Medium Term Expenditure Framework, particularly against the background of the impact of the Coronavirus pandemic on the global economy.

  “This is part of measures to prepare for worst-case scenario, as well as insulate Nigerian economy against any form of unexpected crisis. Revenues for Nigeria Customs Service (NCS) have been reduced from N1.5 trillion to N943billion due to anticipated reduction in trade volumes.

Privatisation proceeds will be cut by 50 per cent, based on the adverse economic outlook on sales of the Independent Power Projects (IPPs) and other assets. Federal government is working on Fiscal Stimulus Measures (FSMs) to provide financial relief for taxpayers and key economic sectors. We will boost recruitment and retainment of staff by employers should there be economic downturn.

We will stimulate investment in critical infrastructure; review non-essential tax waivers to optimise revenues, and compliment monetary and trade interventions to respond to the crisis,” she said is working on Fiscal Stimulus Measures (FSMs) to provide financial relief for taxpayers and key economic sectors.

We will boost recruitment and retainment of staff by employers should there be economic downturn. We will stimulate investment in critical infrastructure; review non-essential tax waivers to optimise revenues, and compliment monetary and trade interventions to respond to the crisis,” she said.

  Speaking to newsmen, President of the Senate, Ahmad Lawan, confirmed that the meeting “discussed the proposed review of the 2020 budget and the Medium Term Expenditure Framework.”

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