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| Engineer working in nigeria petroleum site |
The fall of petroleum price has affected the Nigerian economy due to the fact that it political leaders focused the Nigerian economy only on the revenue generated by the crude oil sector.
This unexpected outcome that the Nigerian government did not see coming has made them to revise the budget which has been laid down for the year 2020.
Which means the borrowing will be increased to carry out necessary plans[Our Opinion].
Therefore, the Nigeria government whose oil generated revenue might be slashed into half due to the price fall has put an halt.
The Nigeria finance minister Zainab Ahmed recently got approval from the West African Nations board on may 13th to go through with the new budget that cuts expenditure by 0.6% from what from the budget that was proposed before the fall of petroleum price.
Due to these updates, to keep the economy running,nigeria will rely on borrowing.Nigeria targeted
IMF approved $3.4 billion in emergency support to fight the pandemic,stiil there are speculations that there is enough capacity to repay the funds it is owing.
The IMF announced that the country's revenue generated from other sources is the slowest in the world,will also be negatively impacted due to the corona virus lockdown.
The cheif Economists for Africa, Razia Khan said that it is going to be all-mportant to see what revenue measures underlines the budget assumption.
Nigeria could boost it revenues merging it official exchange rate which has been fixed at 360 per dollar, with that of the rate offered to investors and importers, which averages 387 naira to a dollar.Such devaluation could mean more naira notes for every dollars of oil sales being made.
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