Investor Presentaiton

COVID-19 Impact on the Budget and Fiscal Policy Response Federal Ministry of Fiscal Impact of COVID-19 Pandemic ▪ 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 GDP swing from 2.9% growth forecast pre COVID-19 to 4.4% contraction post COVID-19 Amendment of The 2020 Appropriation Act & MTEF 2020-2022 & Fiscal Strategy Paper Proposed fiscal gap of c. US$13.8 billion for 2020 (previously US$7.1 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) ■ Downward adjustment of Non-Oil Revenue projections including various tax and customs receipts, as well as proceeds of privatisation exercises Adjustment in Budget Exchange Rate to N360/US$1 from N305/US$1 Other Policy Measures Removal of fuel subsidies regime ■ Full cost reflective power tariffs in 2021 Finance, Budget and National Planning Proactive and people-centred response with flexibility to adjust as the situation evolves 4 Source: Ministry of Finance, Budget and National Planning

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