Federal Government of Nigeria hosted a global investor call on Tuesday, June 23, 2020. Representatives were.
- Mrs. (Dr) Zainab Shamsuna Ahmed (Hon. Minister of Finance, Budget and National Planning)
- Mr. Godwin Emefiele (Governor, Central Bank of Nigeria)
- Mr. Ben Akabueze (Director-General, Budget Office of the Federation)
- Ms. Patience Oniha (Director-General, Debt Management Office)
- Dr. Osagie Ehanire (Hon. Minister of Health)
The presentation was focused on Macroeconomic & Fiscal Response, Central Bank of Nigeria’s Response and COVID-19 Response & Health Infrastructure.
Key highlights
Macroeconomic & Fiscal Response
- Reduction in FGN revenue available for budget (including GOEs) from N8.4 trillion to N5.6 trillion
- COVID-19 related fiscal expenditure of N500 billion
- Revision of the benchmark oil price for 2020 to US$25/barrel (previously US$57/barrel) and oil production to 1.9mbpd (previously 2.18mbpd)
- Adjustment in Budget Exchange Rate to N360/US$1 from N305/US$1
- Removal of fuel subsidies regime
- Full cost-reflective power tariffs in 2021
- N2.3 trillion domestic debt. 63% raised so far.
- Nigeria has no plans to ask for debt forgiveness.
Central Bank of Nigeria’s Responses to the Q&A Session
- Depreciation of the Naira along with supply shocks attributed to COVID-19 led to a gradual rise in inflation.
- inflation to begin a downward trend in Q4 2020 given the strengthened emphasis on improving productivity in the agriculture and manufacturing sectors
- Given the drop in crude oil prices and its impact on the foreign exchange earnings, NGN/USD rate experienced an 18% depreciation at the official exchange rate window.
- CBN will continue to work towards a gradual unification of rates across all FX windows.
- CRR debit will continue to be an unorthodox means to curb liquidity.
- CBN assures FPI everyone will get their monies in an orderly manner.
- Expected $3 billion foreign loans from AfDB and Afrexim to boost reserves further.
