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JUST IN: FG cuts 2020 budget drastically

2 Min Read

In an apparent response to the economic downturn occasioned by the coronavirus pandemic, the Federal Government has proposed a revision to the 2020 Appropriation Act.

Sources said that the revised document showed at least a 20 percent cut on capital projects across ministries, departments, and agencies to the tune of N312,820,542,675.

The Federal Government is therefore seeking a downward review of the 2020 budget from N10, 594, 362,364,830 as approved to N10,276, 887,197,728.

It was gathered that a revised copy of the Act, which slashed costs drastically, was sent to the leadership of the National Assembly.

The leadership of the National Assembly, the Minister of Finance, Budget and National Planning, Zainab Ahmed and the GroupManaging Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari were said to have met over the revised document.

Recall that the National Assembly passed the 2020 budget in December 2019.

While proposing a cut in the oil benchmark from $57 per barrel to $30 per barrel, the revised document also reviewed daily oil production to 1.70 million barrel from the initial 2.18 million barrel per day.

It also increased the exchange rate from N305 to N360 to the dollar.

Similarly, the Federal Government inserted a line for N150 billion Federation Provision for COVID-19 Crisis Intervention into the revised document.

The 2020 budget review is expected to be tabled before both chambers of the National Assembly when they reconvene.

Read Also: Nigerians React as Fire Guts Accountant General’s Office

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