Excess oil sales hit N327billion
From Mathias Okwe
(Abuja)
THE Federal Government has saved at least N327 billion in seven months from the sale of excess crude oil above the 2004 budget price of $25 per barrel.
Minister of Finance, Dr. Ngozi Okonjo-Iweala, disclosed this yesterday at this year's ministerial briefing.
She also revealed that the Federal Government might have finally agreed to share the proceeds among the three tiers of governments.
The sharing formula is, however, yet to be adopted as discussion is going on among the stakeholders, she added.
The consultations, according to the minister, "are on the best way to manage these funds from excess crude in a sustainable way that will enhance the interest of the Nigerian people."
She continued: "The dialogue will determine the proportion of the funds that will be saved for what purpose and set aside a proportion to cushion the economy from the negative effects of oil price volatility as well as financing of infrastructural projects."
Okonjo-Iweala spoke further: "At the end of the day, the results of these consultations and negotiations will be captured in the Fiscal Responsibility Bill and presented to the National Assembly for debate and hopefully, passage."
The good news, according to her, "is that the governors have demonstrated a commendable spirit of partnership on the issue, and there is every indication that the dialogue with them and other stakeholders will produce positive results."
Okonjo-Iweala revealed that the Nigeria Customs Service in the first six months of the year generated N76.180 billion revenue and recorded 310 seizures valued at about N382 million.
Although she described the performance as encouraging, the minister told the organisation that there was room for improvement, explaining that the general reforms in the Customs were to make it more efficient, accountable and transparent.
On debt management, the minister stated that Nigeria had within the year signed bilateral debt re-scheduling agreements with 12 of the 15- member Paris Club, namely: the United Kingdom, Spain, Belgium, Japan, United States of America and the Netherlands. The rest are Austria, Denmark, Israel, Switzerland, France and Brazil.
She expressed hopes that by the end of the third quarter of 2004, bilateral agreements would have been completed with the remaining three countries, namely Italy, Finland and Russia.
The signing of the agreements, she added, has improved the opportunities for the resumption of normal business, trade, and investment relations between Nigeria the affected countries. She added that a conducive trading environment was being set in motion for the restoration of insurance cover for imports into Nigeria by the Export Credit Agencies of those countries.
