*External debt hits $42.409bn

By Omoh Gabriel, Business Editor

The Federation Account Allocation Committee has disclosed that a total sum of US$5.5 billion was distributed from the Excess Crude Account savings last year. It also said a total of  N4.174 trillion was distributed from the Federation Account among the three tiers of government in 2009.

This was disclosed by the Chairman of the Committee, Mr. Remi Babalola, Minister of State for Finance.

He stated: “Government’s debt position remained sustainable, with an external debt stock of US$3.97 billion as the end of December 2009.  Besides, Nigeria’s external reserve position remains quite comfortable at $42.409 billion at end of 2009 in view of the external liabilities of the private and public sector, as well as import coverage.

“The official and parallel market exchange rates have converged considerably as a result of further liberalization of the inter-bank market by the Central Bank of Nigeria. This trend will be sustained in the coming years, especially in 2010 when substantial recovery of oil production is expected with improved performance in critical sectors and overall real GDP growth.

Babalola, in an address to members of the committee weekend, explained that last N 735.017 billion as augmentation for shortfalls in the budgeted revenue, N 158.679 billion as exchange gain difference between the prevailing exchange rate and the budgeted exchange rate, while a total sum of US$5.5 billion dollars was distributed from the Foreign Excess Crude Account,” he said.