Low Oil Prices: FG to diversify revenue streams, optimize spending
The Federal Government of Nigeria will pursue diversification of its revenues and adopt greater prudent resource allocation measures to mitigate the impact of low oil prices should it continue.
Speaking at a meeting with investors during the ongoing IMF/World Bank Spring Meetings in Washington DC yesterday,
the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun emphasized that with the recent reforms embarked upon by the present administration, Nigeria is better positioned to deal with global economic uncertainties.
The Minister outlined the government’s strategy to cope with lower oil prices, including prioritizing government expenditure, expanding non-oil exports, and optimizing assets through public-private partnerships.
He also highlighted the importance of maintaining fiscal congruence, ensuring timely payment of statutory obligations, and boosting revenue through increased oil production.
Given the current crude oil price of $68 per barrel, below the $75 benchmark in the 2025 budget, the Minister stressed that the government’s priority will be to maintain critical spending on infrastructure, power, and food security, meeting the needs of Nigerians
Nigeria is diversifying its economy away from dependence on oil prices, and the extensive work on tax reforms is almost concluded. We will do all we can to create an enabling business environment, provide incentives, and implement structural reforms to attract private sector investment, drive growth, and generate revenue,” the Minister added
The meeting was also attended by the Chairman, Senate Committee on Finance, Senator Mohammed Sani Musa; the Deputy Chairman of the House of Representatives Committee for Finance, Hon. Saidu Musa Abdullahi; the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso; the Permanent Secretary of the Federal Ministry of Finance, Mrs. Lydia Shehu Jafiya and the Director General of the Debt Management Office, Ms. Patience Oniha
With a focus on prudent resource allocation and diversification, Nigeria is poised to navigate the challenges of low oil prices and achieve sustainable economic growth.
