By Tordue Salem

The House of Representatives has set up an ad hoc committee to recommend measures to address the continuous fall in price of crude oil at the international market due to the negative effect of coronavirus disease (COVID-19).

At plenary on Tuesday, the House resolved to set up an ad hoc committee to examine the situation.

The committee is expected to focus on the negative effect of COVID-19 on the prices of crude oil, and how it affects the benchmark of the 2020 budget as passed by the National Assembly.

The resolution was sequel to a motion of urgent national importance raised by the Chairman of House Committee on Finance, James Faleke (APC Lagos).

While presenting the motion, Faleke noted that the disease was affecting not only Nigeria but other oil-producing countries as well.

According to him, if drastic measures are not put in place, it will have an effect on the Appropriation bill passed by the national assembly, adding that the federal government may find it difficult to pay salaries in the nearest future being that we run a mono-economy.

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The Motion was unanimously adopted by the House without debate, with Speaker Femi Gbajabiamila presiding.

The House referred the Motion to the Committee on Finance.

Recall that since the outbreak of coronavirus, economies of leading countries has been on a fast decline, affecting Oil Producing countries.

Though the 2020 budget was benchmarked at $57, oil prices have suddenly tanked to less than the benchmark.

Recall that President Muhammadu Buhari had a few days ago summoned an emergency meeting of key cabinet members on the way out of the dire situation.

Vanguard