Posted by Michael Faloseyi and Oluyinka Akintunde, Abuja on
The country's Excess Crude Oil Earnings Account rose to over $8.3billion in March 2005, from a little over a billion dollars at the corresponding period last year.
The country's Excess Crude Oil Earnings Account rose to over $8.3billion in March 2005, from a little over a billion dollars at the corresponding period last year.
According to the National Economic Intelligence Committee, the closing balance on the account as at the end of March was $8.265billion, which included about $3.3billion put in short-term investment.
Presenting a report to President Olusegun Obasanjo on the performance of the economy in the first three months of 2005 on Wednesday, the Chairman of NEIC, Prof. Ibrahim Ayagi, explained that crude oil prices averaged $48.01 per barrel during the period under review, about $18.01 above the $30 per barrel benchmark for the 2005 budget.
The development, he said, pushed up excess crude oil revenue by about $3.178billion, out of which $857.17million was monetised.
The revenue profile was based on crude oil production of 2.71million barrels per day at $30 per barrel, natural gas, and upstream gas revenue of N53billion.
According to NEIC, total federal revenue during the period was N1.263trillion, out of which N1.1140trillion or 88.2 per cent was realised from the oil and gas industry.
Ayagi also said that 95 per cent of the amount was remitted into the federation account, while N290.71billion was paid into the consolidated revenue account.
He explained that the Federal Inland Revenue Service and the Nigeria Customs Service both realised N11.169billion during the period; while about N3.370billion received by the Central Bank of Nigeria from Value Added Tax, had not been applied by the FIRS.
The NEIC chairman added that the Federal Government lost about N18.293billion to waivers, duties and concession during the period.
The planned harmonisation of tariff with the ECOWAS tariff regime Is expected to address the development in subsequent quarters, NEIC said in the report.
It said that the delay in the release of the capital expenditure during the period under review might create distortions in the economy because of the N145billion released late in April.
Whereas total financing inflow of the Federal Government during the period under review was estimated at about N304.21billion, actual expenditure was estimated at about N174.86billion, the report added.
The report also projected that the Gross Domestic Product would grow by about 5.8 per cent with agriculture having 6.6 per cent, manufacturing 3.85 per cent and oil and gas 5.20 per cent.
In another development, President Olusegun Obasanjo has directed the Minister of Commerce, Alhaji Idris Waziri, and the Special Adviser on Petroleum and Energy Matters, Dr. Edmund Daukoru, to investigate the rise in the prices of cement, sugar, and diesel.
The two are also expected to make recommendations to the Federal Government on how to reverse the trend.
The Punch, Thursday June 23, 2005