OIL SLUMP.part 1

The Nigerian economy to contract by 3.4% in 2020,due to global outbreak of the COVID19 pandemics and its debilitating effect on global oil prices.The total national budget for 2020 of 10.59 tr.naira was signed into law by President Muhammad Buhari a new record as opposed to 8.83tr.and 8.92tr.naira respectively for the corresponding past two years.The finance minister Ahmed Zainab in a web conference said the budget would be cut by 15% and oil benchmark would be cut for the second time.It was first cut from 57dollars as official benchmark when the budget was signed in December,2019 and then to $30per dollar.With new budget revision would be cut to $20 as noted in the interview with finance minister.Infact daily oil output was cut from 2.18million bpd.down to 2.1million bpd.Further cut to 1.7milion bpd was agreed in which the first slide deducted 320billion naira and budget figure had to come down to 10.27trillion naira.In the latest review there would be 15%cut or minus at least 1.5tr.naira from the budget.