Nigeria’s finance minister announced last Monday that the country will cut the size of its 10.6 trillion
Why Crude Prices is a Big Deal – Crude oil sales account for up to 90% of foreign exchange earnings in Nigeria and since demand in oil has been down globally due to the face-off between Saudi Arabia and Russia in the wake of the COVID-19 pandemic, there is pressure on the lower cadre of oil-dependent nations like Nigeria to cut down their prices as well, leading to shortfalls. In simple terms, we have less money to make from oil and fewer buyers. The current global oil price is $25 / barrel, 56.14% lesser than the oil price prediction for Nigeria’s 2020 budget. The implication of this is that some features of the 2020 budget are now out of reach.
We Are Supposed to Have Money
With an economy highly vulnerable to drop in oil prices, The Excess Crude Account was established in 2004 for a time like this – to protect planned budgets against shortfalls due to drastic
Surging Numbers Will Expose Us
It will be instructive to note that coronavirus’s ability to slow down businesses and inhibit consumer action is the way in which the pandemic will slow down the economy. Globally, countries that are battling the coronavirus have taken big moves towards stabilizing their economy and the purchasing power of their residents as the majority of the countries are adopting a lockdown of their cities and towns and cash transfers to citizens. Nigeria is faced with combating the coronavirus spread within its borders, which has gradually risen from one confirmed case on February
What the Government Has Done
In response to this, the Federal Government of Nigeria has placed a travel ban for all