(Ecofin Agency) - The Federal government of Nigeria could adjust its budget provision for this year to curb the impact of the ongoing coronavirus on oil prices. This was announced by the Finance Minister Zainab Ahmed (pictured).
“The current crude oil price of $53 a barrel is below the budget benchmark. So what we are doing is studying the situation. We are committed to doing a midterm review,” she said. The $29 billion budget approved this year was based on an oil price benchmark of $57 per barrel.
If the ongoing coronavirus outbreak persists, the West African economy, which depends almost exclusively on its oil sector, could suffer more dire consequences. The price of Brent crude has already slid by about 22% this year due to the situation.
On a regional level, the International Monetary Fund revised West Africa’s growth forecast down to 2%, from 2.5%.