The Senate on Tuesday jerked up the proposed oil benchmark price from $25 as suggested by the Executive arm of government to $28 per barrel.
This is also as the Senate adjusts and retains other parameters as contained in the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) presented to the legislature by President Muhammadu Buhari in the wake of COVID-19 pandemic and consequent adjustments to the 2020 budget.
Subsequently the Senate had referred the fiscal documents to its Committee on Finance on May 28, 2020 for further legislative actions.
Other projections are oil production output reduced to 1.8 million barrel per day as against executive’s recomended 1.9mbpd and the exchange rate retained at N360 to $1. GDP Growth Rate is -4.42% and inflation growth rate is put at 14.13%, among other forecasts.
The decisions of the Senate followed the adoption of a report of the Senate Committee on Finance chaired by Senator Adeola Olamilekan (APC, Lagos West) after an exhaustive debate at plenary.
This development is a precursor to the consideration of the proposed revised 2020 budget by Senate Committee on Appropriations ahead of its approval by the Senate at plenary.