The Minister of State for Finance, Mr. Remi Babalola, has raised fresh hopes for the nation’s economic performance as he said the raising crude oil price and higher output would ensure a strong budget performance at all levels of government.
Nigeria’s reference oil , Bonny Light, price has risen to $79 per barrel, while the end to militancy in the Niger Delta region has significantly increased the nation’s crude oil production to a level close the OPEC quota, he told the Federal Accounts Allocation Committee (FAAC) meeting in Abuja, yesterday.
“Bonny light price has increased 70 per cent, year-to-date closing at $79 per barrel. Our production level is improving and gradually approaching our OPEC quota level. The major risk and binding constraint to our economic buoyancy in the short_run is the contraction of the credit squeeze”, he said.
Nigeria’s Crude oil quota is 1.67 million bpd, while the nation’s oil production estimate for this year was put at 2.292mbpd with a benchmark $45/barrel.
Mr. Babalola, therefore called on banks to resume prudent lending to the real sectors of the economy with a view to stimulating growth, across the nation.
His words, “We therefore call on our money centre banks to resume prudent lending immediately as their pivotal role in bolstering the economy cannot be overemphasised. The automatic fiscal policy inherent in our budgetary system and discretionary fiscal stimulus from excess crude releases cannot replace financial intermediation.
“It is only lending activities to small and medium enterprises that can engender growth for the real sector in the long_run and not an unsustainable fiscal stimulant.”
The minister, however, charged the three tiers of government to adopt some strategic structural reforms to help them sustain economic recovery over the medium term. Several state governments have gone to the capital market to raise funds through the issuance of bonds, while others have collected facilities from banks, a situation that has caused a lot of disquiet in the polity.
Mr. Babalola urged all tiers of government to ensure robust “investment in infrastructure, institutions, the environment and basic health and education, combined with greater cooperation and integration, will help make that happen.
“I believe we can all rise to the challenge and build a stronger, stable, more equitable and more prosperous future, with opportunities to participate in and benefit from growth extending to all our citizens,” he added.
The three tiers of government shared a total of N354.303 billion from the federation revenue in the month of October.
Statutory allocation accounted for N165.624 billion of the total distributed revenue, while Value Added Tax and Budget Augmentation amounted to N39.778 billion and N121.228 billion, respectively.
This month’s shared revenue was marginally higher than the N350.724 billion shared last month.
When it was $150 what happened?, abeg lets hear another thing bo, na today?
Mr. Remi Babalola before you start jubilating or being economical with the actualitte you must hear and read this. You must not be in cloud cuckooland.
The people of the Niger Delta must read this and Nigerians must take note. If Nigeria fails to use what is remaing of their crude oil resourses now, then we are doomed. My advice is that Nigeria must now drastically cut down on its crude productions and urgently diversify its economy without futher delay. The people of the Niger delta must make sure and use any means to compel the federal government to start massive developement and investment in the Niger delta and her people. Anything short of this we will greatly regret in the future and our children, grand children and yet unborn ones will never forgive us.
The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying.
The senior official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves.
Nonsense, we have long lost hope in our leaders. They are not creative the least bit nor do they care. With the exception of Lagos state, nothing is happening in the country. Even if the share 100trillion, there is nothing to show. What we hear everyday is scams and frauds of billions perpetrated by government officials and none of them has gone to jail. Go to EFCC website and you will be shocked by their list of offenders. God bless Nigeria.
Well said all this Minister is living in a cloud cookoo land. Why the dependency on one source of income, besides regardless of how much the oil price goes up it has a detrimental effect on Nigeria. Nigeria is a consuming country not a producing country, hence price will go up for the imported goods. The increase in price does not filter to developing the Nation anyway, all it does is increase the income of the cabals. Congratulations to the green eagles as that is the only avenue for real success in a country full of corrupt leaders.
Does this calls for celebrations on the pages of our national dailies? What will the average Nigerian gain from this?
Yeah, there are fresh hopes of looting. Fresh hopes of corruptions & political killings. Fresh hopes of poverty & deprivation. Fresh hopes of decaying infrastructures. Fresh hopes of insecurity.
God is watching!
shameless lazy and unproductive parasitic dependants of niger delta’s oil.
There is no hope for Nigeria even if oil gets to $200 per barrel. Of course hindsight benefits should tell us that.
Only true federalism can can give us fresh hope.
Its nice to hear that the price of crude is rising, but what does this translate to the common man on via street? Practically nothing! We have recorded higher returns than this before. What have we to show for it today? Just poverty, degrading infrastructure, poor energy, bad roads and increasing corruption in high places. Even if crude price increases by another 1000%. It means nothing to Nigerians except for the political class who has been the bane of growth and development in Nigeria. Its not yet Uhuru for Nigerians so long as they are not allowed to choose their leaders. GOD SAVE THIS NATION