By Franklin Alli

LAGOS—Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, an arm of the Organised Private Sector, OPS, has asked the Federal Government to transfer 50 per cent of money in the Excess Crude Account, ECA, to Sovereign Wealth Fund, SWF.

In its position paper on the 2013 budget, made available to Vanguard, yesterday, NACCIMA also backed the proposed US$75 per barrel benchmark for crude oil sale in the 2013 budget.

“We counsel that all excess crude oil sales revenue should be channeled to the Excess Crude Account, ECA, and Sovereign Wealth Fund, SWF, with, say, 50 per cent transferred to SWF,” said NACCIMA National President, Dr. Herbert Ajayi.

“Since our economy is dominated by crude oil (a mono commodity product that contributes about 80 percent to the Federal Government revenue and over 90 per cent to foreign exchange receipt),

“We must take the benchmark and volume of oil very seriously to avoid adverse exposure to the volatility of this product in the market. We believe

that the benchmark of US$75 per barrel is comfortable while the volume of crude we export must compensate for any shortfall,” said Ajayi.

Ajayi said the association commended government’s plan to substantially increase domestic debt servicing in 2013, and requested that a substantial portion of the debts owed local contractors be paid.

He said: “This will reduce the problems presently faced by local contractors and consequently boost economic activities in the private sector.  Those who do business/contracts with Government and her Agencies have a right to expect a show of good example by Government respecting its own side of contracts and agreements and payment terms. This will reinvigorate several local contractors to improve their contributions to the economy, grow their businesses, and create jobs.”