Liquidity Crisis: Nigeria To Pump $2 Bln Oil Money Into Economy

Nigeria to pump $2 bln oil money into economy: minister
(AFP) – 8 hours ago

ABUJA — Nigeria plans to draw two billion dollars (1,4 billion euros) from its oil savings to boost liquidity in the economy, the junior finance minister said Tuesday.

Remi Babalola said the country's national economic council -- a body comprising the presidency, the 36 provincial governors and heads of federal economic units -- had cleared the stimulus package.

The funds will come from the country's excess crude account, a fund into which windfalls from oil are stored.

"We are just taking money from the savings and pushing it into the system to make sure that the system runs well," he told AFP.

"That is what has just been ratified by the National Economic Council right now," Babalola told AFP.

The money is to be distributed to all the three tiers of government -- federal, state and local governments -- to provide "additional liquidity into the system to re-energize" it, he said.

Local media on reported Tuesday that the money will be used to cushion the effects of the global economic crisis, stimulate manufacturing, create employment, improve power and road sectors.

Nigeria, the world's eight largest oil exporter, has seen its output drop by around a third due to violent militant attacks on oil facilities and workers in its oil hub, the Niger Delta.

An offer for amnesty by government saw most of the known and dreaded militant leaders lay down arms by the Sunday deadline, but the umbrella rebel group the Movement for the Emancipation of the Niger Delta vowed to resume fighting.

Babalola Wants Confidence Restored in Financial System
From Kunle Aderinokun in Abuja, 10.05.2009
 
Minister of State for Finance, Mr. Remi Babalola, at the weekend ,  sought the restoration of confidence in the Nigerian financial system so that  the sector could  play its critical role in the economy.
 In a statement signed by his Special Assistant on Communications, Mr. Oluyinka Akintunde, Babalola also called for the sustenance of the ongoing reforms in the financial system in the interest of the Nigerian economy.
“We need to restore confidence back into the system and energise the financial institutions to play a pivotal role in economic transformation,” he said.
Babalola explained that the ongoing reforms in the financial sector were necessary in order to address inherent gaps in the system and make the banks compete successfully in the global financial market.
The financial system, he stated,  had in recent times been faced with a number of challenges ranging from the banking operations risk to stiff competition among banks, as well as stakeholders’ expectations,  including the desire of insured financial institutions for the adoption of risk-based premium assessment system.
He  therefore advised the financial institutions to adopt sound corporate governance, probity, accountability, transparency, integrity and stringent financial reporting standards. 
“The Board of Directors, Management and Staff of our financial institutions must adopt sound governance practices and exemplary conduct to cope with the day-to-day challenges of the global financial markets, and for them to excel.
“We must realise that although technology and management skills are important, the basis for our financial market competitiveness may have more to do with sound corporate governance principles, than mere possession of advanced technology or even management skills,” Babalola said

This is money to be use for 2011 elections.

yes it is time for action,no more big grammar oyah fall in line and start the revolution

Heh. Idiocy. And I'm not talking about politicians,
I'm talking about the reporters who report propaganga as news.