To reflect the present harsh economic realities occasioned by the coronavirus pandemic, the Federal Government has adjusted the 2020 budget, cutting down the figures by ₦317.5 billion.
It will be recalled that the National Assembly had in December 2019, passed a budget of ₦10.5 trillion.
The development also affected other components of the budget in a document sighted by reliable sources, the federal government reduced the 2020 estimate to ₦10.276 trillion, resulting in a difference of ₦317.5 billion.
Consequently, the crude oil sales formerly bench marked at $57 per barrel has been slashed to $30 per barrel, while oil production volume has been reduced from 2.17 million barrel to 1.70 million barrel.
However, the exchange rate which was hitherto placed at ₦305 has increased to ₦360 to a dollar.
Federal Government’s share of oil revenue, the share of Nigerian Liquefied Natural Gas (NLNG) dividends, the share of minerals & mining, non-oil among others were reduced from ₦7.866 trillion to ₦4.534 trillion.
The re-distributable Federal Government’s share of the Federation Account (52.68%) was reduced from ₦4.516 trillion to ₦1.648 trillion; deduction was reduced from ₦214.291 billion to ₦78.216 billion; Net Federal Government share of Federation Account (48.5%) was reduced from ₦4.157 trillion to ₦1.517 trillion, while the net ecological and derivation after 10% transfer to National Economic Development Council (NEDC) was reduced from ₦77.145 billion to ₦28.158 billion.
The document also showed a reduction in the Federal Government share of Value Added Tax (15%) from ₦313.472 billion to ₦300.732 billion; FCT 1% reduced from ₦20.898 billion to ₦20.683 billion while Net Federal Government share of VAT pool account (14%) was reduced from ₦292.573 billion to ₦280.683 billion.
The new budget was believed to have been discussed by the Minister of Finance, Mrs. Zainab Ahmed during a closed door meeting with the leadership of the National Assembly yesterday, April 8.
It was learned that the details will be officially sent to the National Assembly for consideration and approval when it resumes plenary next week.
The Finance Minister also informed the National Assembly leadership that the Ministry was set to present the revised 2020 budget as well as the Medium Term Expenditure Framework (MTEF)/Fiscal Strategy Paper (FSP).
The meeting also featured the Minister of State for Petroleum Resources, Timipre Sylva, the Group Managing Director, (GMD) of the Nigerian National Petroleum Corporation, (NNPC), Mele Kyari, among other government officials.