The Finance Minister presented a revised version of the budget to the National Assembly on Wednesday. In the revised framework, a lower oil price of $30/barrel was adopted from $57/barrel approved in December 2019. Also, she noted adjustments to non-oil revenue with the major change emanating from expected Customs revenue (from N1.5 trillion to N943 billion) and cut in income from planned privatization of some assets by 50%.
Also, expenditure cut of N1.5 trillion was announced without clear guidance on the affected expenditure lines. While we believe these changes are necessary, the cut in expenditure limits the ability of the fiscal authority in providing adequate stimulus in the face of a critical economic shutdown.
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