Oil, gas revenue dropped by N425.52bn in Q1 –Minister

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Oil, gas revenue dropped by N425.52bn in Q1 –Minister

The country ’ s revenue from oil and gas dropped by N 425 .52 bn in the first quarter of 2020 to N 940 .91 bn , Minister of Finance , Budget and National Planning , Zainab Ahmed , said on Friday .

She disclosed this in her presentation at the National Economic Council ’s first virtual meeting , according to a statement by the Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande .

The minister stated that Nigeria was faced with perhaps the most challenging economic situation in its history .

The global economy was also facing its sharpest reversal since the great depression and this had health and economic implications , she said.

For instance , she noted that “ COVID -19 has resulted in the collapse in oil prices ,” stressing that this would impact negatively on federation revenues and foreign exchange earnings .

The minister said, “ The net oil and gas revenue inflows to the federation account in Q 1 2020 amounted to N 940. 91 bn . This represents a shortfall of N 425 .52 bn ( or 31 . 1 per cent of the prorated amount ) . ”

To prevent a deep recession arising from the COVID -19 economic crisis, the orthodox approach all over the world , which was also in the works in Nigeria , was to deploy a stimulus package , according to the minister .

Giving more updates, she said excess crude account had a balance of $ 72 ,4 m as of May 21 , 2020 ; stabilisation account had N 39 . 33 bn ; while natural resources and development fund account had N 125 . 19 bn .

The statement said the council had a resolution to ensure a more effective synergy between the Federal Government and the sub -nationals , especially in matters relating to the fallout of the COVID -19 pandemic , including how to effectively and efficiently reopen the Nigerian economy after the lockdowns .

Chaired by Vice -President Yemi Osinbajo , the council is composed of all the 36 state governors, the FCT minister , Central Bank governor and other top officials of the Federal Government .

It stated that they specifically decided to set up a lean committee of seven to work with the Presidential Task Force on COVID - 19 .

The committee to be led by the Delta State Governor , Dr Ifeanyi Okowa , also included the governors of Lagos , Kano , Bauchi , Anambra , Plateau states, and the FCT minister .

According to the Vice President , the committee will ensure more effective collaboration and coordination between the Presidential Task Force and the states of the federation including the FCT .

NEC also resolved to cooperate with the Economic Sustainability Committee set up by the President and chaired by the Vice President in the development of a national economic sustainability plan .

It stated, “ Such a plan is expected to introduce a substantial stimulus package running into a couple trillion naira ; ensure that Nigeria as a country gets through the COVID -19 economic challenges and in fact chart a path of growth and development for the Nigerian economy by ensuring massive productivity in several sectors including agriculture , power , infrastructure , technology and several others . ”

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