The Federal Government has announced a multi-pronged strategic response to mitigate the adverse effect of the decline in global oil prices.

Addressing a Special Media Briefing in Abuja, Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala declared that the Federal Ministry of Finance has been keeping a close eye on movements in global oil prices because of the critical importance of oil as the country’s most important source of revenue.

According to her, the drop in oil prices is a serious challenge which the nation must confront ,adding that government must be prepared to make sacrifices where necessary not forgetting to retain some important advantages such as a broad economic base driven by the private sector and anchored on sound policies.

The minister further stressed the need to adopt important strategies that are based on facts and a clear understanding of both the strengths of the economy and the challenges posed by the drop in oil prices which is currently at $79 per barrel.

She said even though the drop in oil prices is a serious challenge, it is also an opportunity for the country to focus on greater diversification and refocus efforts towards the non-oil sectors in preparation for a future with less oil revenue.

Dr. Iweala however announced reversal of the Medium Term Expenditure Framework (MTEF) and the Budget 2015 proposal to the National Assembly to allow a new benchmark of $73 dollars per barrel instead of the 78 dollars per barrel earlier proposed.

The Minister assured of Government commitment to continue to strengthen the sectors that drive growth such as agriculture and housing while reducing waste with a renewed focus on prudence.