LAGOS (AFP) - Nigeria's foreign currency reserves rose to 58.3 billion dollars (37.4 billion euros) in February 2008 from 54.79 billion dollars the previous month, the Central Bank of Nigeria (CBN) said Friday.

The bank said the reserves had grown steadily in the last three years, driven by high crude oil prices in the international market.

Oil prices simmered down Friday after hitting a record 111.00 dollars per barrel overnight, but analysts said prices remain on the boil due to a sharp fall in the value of the US dollar.

New York's main oil futures contract, light sweet crude for delivery in April, was at 109.78 dollars per barrel in Asian trade, down 55 cents from its all-time closing high of 110.33 dollars in New York.

The CBN said the reserves level, which hit 45 billion dollars in 2005, dropped to 32 billion dollars after Nigeria paid 12.4 billion dollars in debt owed to governments in the Paris Club of creditors.

It said reserves began to build from April 2006, when the total came to 37 billion dollars. The total then went to 41.95 billion in December 2006 and to 42.65 billion in the first weeks of 2007.

The Paris Club in 2005 cancelled 18 billion dollars of Nigeria's debt, leaving a total of 12.4 billion dollars, including arrears and interest.

Nigeria, Africa's biggest oil producer with a daily output of 2.6 million barrels at peak production level, derives around 95 percent of its foreign earnings from the oil sector.

http://news.yahoo.com/s/afp/20080314/wl_africa_afp/nigeriaeconomyreserves_080314124556

so would we gain anything from this oil boom??

We can start by making sure that we have Yar Adua's head served to the people, if any cent of that money goes on accounted for.

we can start by giving 95% of that money to the true owners - the Niger Delta.

we can start by giving 95% of that money to the true owners - the Niger Delta.

most Nigerian states would crumble without federal government funding.

bawomolo:

most Nigerian states would crumble without federal government funding.

and is that a bad thing.

all these duplicitous admin units will cease to exist.

it won't be a bad thing if u want highly centralized governments. the revenue should be allocated to all the states. 95% going to niger delta is way to much and would spark ethnic sentiments in nigeria

And why can't states generate their own revenue? The state of our affairs is so heart breaking and frustrating because it is mostly common sense that has just failed to prevail. So what was everyone doing before oil, waiting for oil? We should be encouraging competition between states and zones because it fuels growth and development. Instead what we have is people who have just become dependent on one area and hence a very monotonous economy. Like a 45 year old still living at home with his parents. So if an alternative to oil was found tomorrow would that become the end of us?

bawomolo:

most Nigerian states would crumble without federal government funding.

Why didnt they crumble between 1960 and 1966? Infact this period corresponds to the only time we could regard ourselves as the giant of Africa and on par with the Asian tigers with an economy stronger than that of Japan . . . so what happened when "federal funding" came into play?

bawomolo:

it won't be a bad thing if u want highly centralized governments. the revenue should be allocated to all the states. 95% going to niger delta is way to much and would spark ethnic sentiments in nigeria

It will only spark ethnic sentiments from those who have become used to earning what they did not work for.
Why shld revenue be allocated to all states? If those states were unviable why did we create them in the first place?

In 1960 we had less than 15 federal ministers, and only 3-4 governors . . . today we have 50 ministers and 36 governors . . . why are we worse off?

bawomolo:

it won't be a bad thing if u want highly centralized governments. the revenue should be allocated to all the states. 95% going to niger delta is way to much and would spark ethnic sentiments in nigeria

I am surprised by your response oo. . .considering your arguments against social spending in another thread on this section.

The Federal in Nigeria is in name only. The states are at the mercy of the centre and you will always find their reps in Abuja
begging for alms from the Federal government. Internally generated revenue is an alien phrase in Nigeria.

Discarding the current state of affairs will allow only state governments that are self sufficient to remain or at least live according to their means.

Political sloths abound in states like Gombe, Jigawa e.t.c devoid of any intelligence currently inhabit state houses and legislatures. Perhaps if we made the tasks more daunting and less lucrative, persons with ideas might begin to emerge in the states.

That Niger Delta has been blessed with oil. . .it is unfortunate that the region is paying some kind of penalty for this blessing. A most discombobulating state of affairs.

doyin13:

Political sloths abound in states like Gombe, Jigawa e.t.c devoid of any intelligence currently inhabit state houses and legislatures. Perhaps if we made the tasks more daunting and less lucrative, persons with ideas might begin to emerge in the states.

We can jaw-jaw from now till Christ comes, this is the only solution to Nigeria's problems.

4Him:

We can jaw-jaw from now till Christ comes, this is the only solution to Nigeria's problems.

Why not we at least make sure that we hold someone accountable for every dollar of that money to be sure that we curb corruption for now?? I mean sending 95% of that money to the Niger delta does not mean the lives of those who live there will improve with all that corruption down there. There lives majorly is the way it is now cause all money previously sent that way has been either 1) mismanaged by unskilled individuals parading as leaders or 2) embezzled by thieves in sheeps clothing. What does sending 95% down there do for a people who are ruled by thieves?? I say we at least ensure that we have someone to hold responsible and to prosecute should any of that money go unaccounted for. I say we start with Yaradua if we do not want the same old story such as the loosing of billions of dollars to projects that never get completed or implemented and no way to bring the persons to book for such crimes against the people.

@Kobojunkie

Is the management of the funds by other regions of the federation any better eh?

The fight against corruption is a matter of course no doubt, but the argument that we should not give Niger Delta revenue to the Deltans
because they waste it is quite disingenuous and ultimately condescending.

@ kobo, that was tongue in cheek.

I favour Doyin13's ideas . . .
To your points: there is no way we can start holding our leaders accountable for every penny spent, look the money they spend is not our taxes but oil money drilled by them and their foreign conspirators . . . why shld they feel the need to explain every penny they spend?
Ever heard the term "government money"?

Until we relegate oil to the background we will continue with so much motion but no movement.

The simple fact is that it does not matter who we give money to anyways if we don't hold leaders accountable. We could even have $1 trillion dollars in foreign reserves, all it will translate to will mean we have politicians turned trillionaires in Nigeria and that my friends is the real "motion without movement".

doyin13:

@Kobojunkie

Is the management of the funds by other regions of the federation any better eh?

The fight against corruption is a matter of course no doubt, but the argument that we should not give Niger Delta revenue to the Deltans
because they waste it is quite disingenuous and ultimately condescending.

If you notice in my response, I am not even concerned about who get's what portion of that money. I am more concerned about who I get to FRY in hot OIL when that money is mismanaged at any level. If I were to decide where that money should go, I would say we start by spending the bulk of it on building power generation plants and then good roads and then water supply BUT from experience, I am privvy to the FACT that BILLIONs have been lost to such projects in that country, no matter which region the money is moved to. So I prefer we have a Plan in place FIRST or ALL that will help curb Corruption. Give me a SCAPE GOAT first, so that I know whose head to demand should anything of what we have had happen over and over for decades, happen again.


@4Him, Oil Money belongs to the country as a whole, regardless of which area should get the bulk. I mean even we decide in the future to give 100% of the money to the Niger delta, right now, it is the responsibility of every Nigerian to make sure that those they elected to office not mismanage oil money which in no way or form is free money for the government to spend as it chooses.

Why didnt they crumble between 1960 and 1966? Infact this period corresponds to the only time we could regard ourselves as the giant of Africa and on par with the Asian tigers with an economy stronger than that of Japan . . . so what happened when "federal funding" came into play?

u do realize the regional system of government in nigeria was laden with corruption. wild wild west riots etc

@Kobo

How the oil money take belong to the whole country. I don't get that at all.

You are so miserly with your taxes but so generous with Niger Delta money.

E ku Ishe

The fight against corruption is a matter of course no doubt, but the argument that we should not give Niger Delta revenue to the Deltans
because they waste it is quite disingenuous and ultimately condescending.

who signed oil contracts  with oil companies. the federal government or niger delta niger delta states have a right to charge taxes but money from oil companies belong to the federal republic.

doyin13:

@Kobo

How the oil money take belong to the whole country. I don't get that at all.

I don't understand your question at all. Does Chevron, Shell and all the other companies drilling in that country deal with the people in the niger delta or the Federal government??

Kobojunkie:

@4Him, Oil Money belongs to the country as a whole, regardless of which area should get the bulk. I mean even we decide in the future to give 100% of the money to the Niger delta, right now, it is the responsibility of every Nigerian to make sure that those they elected to office not mismanage oil money which in no way or form is free money for the government to spend as it chooses.

You live in the US, does Alaska's oil belong to the country as a whole? Can you in your state be demanding for the share of oil proceeds from texas?
Is it any wonder African is where it is today . . . backward rules.

bawomolo:

who signed oil contracts  with oil companies. the federal government or niger delta niger delta states have a right to charge taxes but money from oil companies belong to the federal republic.  

The FG wasnt signing oil contracts until Gowon ruined our fledgling regional government and Murtala finally nailed the coffin with his nationalisation policy.
Oil companies in Alaska deal with the state and not with Bush. They just pay tax for working in the US.

The FG wasnt signing oil contracts until Gowon ruined our fledgling regional government and Murtala finally nailed the coffin with his nationalisation policy.
Oil companies in Alaska deal with the state and not with Bush. They just pay tax for working in the US.

the federal allocation system is here to stay until nigerian states can show some autonomy. besides lagos, many of them can't do this. the nigerian economy isn't diversified enough for the FG to lose control of it's oil revenue.

@bawomolo

if no one is forced to changed, then we will always have the status quo.

These funds are primarily used to fund bloated civil administrations and self serving projects.

Base the revenue from oil on a tax basis and allow more private involvement in the economy.

It is shocking to me in this period of high commodity prices, where the likes of Australia and Chile are
fattening up on gold, copper and iron ore prices, Naija still dey do by force by force oil only.

Change will come only by force, not by some kinda gradual process. Naija no dey ever work like that.

4Him:

You live in the US, does Alaska's oil belong to the country as a whole? Can you in your state be demanding for the share of oil proceeds from texas?
Is it any wonder African is where it is today . . . backward rules.
The FG wasnt signing oil contracts until Gowon ruined our fledgling regional government and Murtala finally nailed the coffin with his nationalisation policy.
Oil companies in Alaska deal with the state and not with Bush. They just pay tax for working in the US.

What we have right now with America is not what we currently have in Nigeria and we should not rush to get there now but at least make sure we deal wisely in this. Like I have been saying all this while. Deciding to send the money down to these people should not be our priority at this time.

bawomolo:

the federal allocation system is here to stay until nigerian states can show some autonomy. besides lagos, many of them can't do this. the nigerian economy isn't diversified enough for the FG to lose control of it's oil revenue.

To start with they where not created for autonomy but as parasites forever dependent on the FG. The old western region was more than sufficient . . . why split it into 6 unviable states if not for the purpose of corruption and to weaken any chance of seccession?

There was no oil boom prior to 1966, how did we survive? When we had no oil our currency was stronger, we had free education, affordable health, jobs and a high standard of living . . . what happened after oil came into the picture?

Where we not once the world's largest producer of palm oil? where is the cocoa and groundnut industries?

Kobojunkie:

What we have right now with America is not what we currently have in Nigeria and we should not rush to get there now but at least make sure we deal wisely in this. Like I have been saying all this while. Deciding to send the money down to these people should not be our priority at this time.

Read our history, we were once there.

@Kobojunkie

Obviously it is dangerous to just hand it over 100% in the twinkle of an eye.

A gradual drawdown of the revenue formula over five years is my suggestion.

The time frame should allow all concerned parties to adjust to a new regime.

4Him:

Read our history, we were once there.

Once there, sure, but we are not still there now and still it should not be our first priority. We were there in the past, we have since then accumulated so much baggage that we need to deal with first and foremost before we go to dealing with getting back there.

doyin13:

@Kobojunkie

Obviously it is dangerous to just hand it over 100% in the twinkle of an eye.

A gradual drawdown of the revenue formula over five years is my suggestion.

The time frame should allow all concerned parties to adjust to a new regime.

ok,  but dude,  I still do not freaking care where the money goes, I just want to have the abillity, the right, to catch and roast the goon that might try to steal any dime of it.

For those who say we must spend most of the oil money on the Niger-Delta,in the interest of fairness,we should.But lets consider this.A lot of oil money has been spent on Abuja and Lagos.Are the people of Lagos and Abuja better off than the people of Imo and Abia?

The stats show us that there is less poverty in the South-East region than anywhere else.If receiving Govt money made much of a difference to a people,the North would be the place with the least poverty.The South-East historically receives the least.Take for instance Abuja indigenes,how much better off are they?

My point is that spending oil money generously on the Niger-Delta won't make much of a positive impact on the lives of its indigenes.

The Niger-Delta is part of Nigeria,its indigenes lives won't improve much if the other parts of Nigeria barely improve.The little difference their is in living standards,such as between the South and North,is mainly down to the different cultures(Southerners are better educated and more entrepreneurial).Govt money won't make much of a difference to people's lives.

All the Govt money spent on racial minorities(more per head than other races) in the UK/US barely budges the income inequality.It actually makes things worse.Nigeria won't be any different.

Kobojunkie:

ok, but dude, I still do not freaking care where the money goes, I just want to have the abillity, the right, to catch and roast the goon that might try to steal any dime of it.

abi ooo. Its not your taxes na!!!!!!!LMAO

4 Play:

For those who say we must spend most of the oil money on the Niger-Delta,in the interest of fairness,we should.But lets consider this.A lot of oil money has been spent on Abuja and Lagos.Are the people of Lagos and Abuja better off than the people of Imo and Abia?

The stats show us that there is less poverty in the South-East region than anywhere else.If receiving Govt money made much of a difference to a people,the North would be the place with the least poverty.The South-East historically receives the least.Take for instance Abuja indigenes,how much better off are they?

My point is that spending oil money generously on the Niger-Delta won't make much of a positive impact on the lives of its indigenes.

The Niger-Delta is part of Nigeria,its indigenes lives won't improve much if the other parts of Nigeria barely improve.The little difference their is in living standards,such as between the South and North,is mainly down to the different cultures(Southerners are better educated and more entrepreneurial).Govt money won't make much of a difference to people's lives.

All the Govt money spent on racial minorities(more per head than other races) in the UK/US barely budges the income inequality.It actually makes things worse.Nigeria won't be any different.

But I bet the Niger Deltans would rather their environs look like Abuja than what obtains at the moment.

Giving money to the Niger Delta wont solve any issue. There are politicians on ground waiting to wolf down the money even in niger delta. The problem we have is not that of allocation , it is actually that "how much of the allocated money is actually being put into use".

I just have to agree with Kobo. If politicians can be cured of the urged to dip hands into public funds, then we would have solved half of our problems. As long as corruption is still rife, allocating a huge percentage to the Niger Delta area is a mere change of baton from federal politicians to state politicians. I still remenber the NDDC case.