COVID-19 Hits 2020 Budget As Buhari Sets Up Review Committee

 

 

By Ayo Kehinde

 

Zainab Ahmed, Minster of Finance

 

As the oil price in the international spot market takes a beating from the disruptive impact of Coronavirus, falling to $26 per barrel from on Monday, President Muhammadu Buhari jas set up a committee to look into the impact on the economy.

According to Minister of Finance, Zainab Ahmed, the committee, which comprises official of the Ministry and Governor of the Central Bank of Nigeria, Mr Godwin Emefiele and his team will look into the impact of the virus on oil and come up with solutions.

Ahmed said the drastic fall in the price to $29 bpd would negatively impact the 2020 budget since it was benchmarked with $50bpd, adding that the committee would definitely suggest a review downward. She said the Committee would however brief Nigerians on the report of the committee.

The need for the committee had become necessity because the is prices is in a free fall. As at Monday morning, Brent crude was selling for $31.80 bpd from around $52.23bpd, five days ago. Within hours it fell to $26, prompting Buhari to set the committee. The price war between a giant producer, Saudi Arabia and Russia, amidst production disruptions by Covid19, has been responsible for the volatilty of the oil market