Nigeria's 0il And Gas Revenue Drop By N425.25 billion In Three Months

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has revealed that Nigeria is experiencing the most challenging situation ever after the country's revenue from oil and gas dropped by N425.52 billion in the first quarter of 2020 to N940.91 billion.

According to Ahmed, “The net oil and gas revenue inflows to the federation account in Q1 2020 amounted to N940.91bn. This represents a shortfall of N425.52bn (or 31.1 per cent of the prorated amount).” 

She further revealed that excess crude account had a balance of $72.4 million as of May 21, 2020, stabilisation account had N39.3 billion, while N125.19 billion was left in the natural resources and development fund account. She made this known during a presentation at the National Economic Council’s (NEC) first virtual meeting.

Ahmed faulted the impact of coronavirus on oil price, which has sent it crashing, "COVID-19 has resulted in the collapse in oil prices,” She said Nigeria is deploying stimulus package like the rest of the world to avoid a deep recession.

Meanwhile, the NEC has created another committee to assist the Presidential Task Force on COVID-19. The committee is led by the Delta State Governor, Ifeanyi Okowa. Other members of the committee are the governors of Lagos, Kano, Bauchi, Anambra, Plateau states, and the FCT minister.

Recession Is Coming

AllNews had reported that Nigeria is getting closer to recession following Ahmed's projection about the economy's contraction. She said the misery of Nigerians will multiply in 2020 as the economy, which is the gross domestic product (GDP), could contract to as much as –8.94% in 2020.

According to Ahmed, “The economic growth in Nigeria, that is the GDP, could in the worst-case scenario, contract by as much as –8.94% in 2020. But in the best case, which is the case we are working on, it could be a contraction of –4.4%, if there is no fiscal stimulus.

"But with the fiscal stimulus plan that we are working on, this contraction can be mitigated and we might end up with a negative –0.59%.”