GEJ would have nobody to blame when the oil bubble bursts in a couple of years because his government has emptied the ECA account, without creating a reserve storage alternative. Even the sovereign wealth fund started with much hoopla does not contain much that can help. Federally shared revenue is already dwindling, and the price of oil may not be so high for much longer any more. It will become clear to all that GEJ has really done nothing to enhance the Nigerian economy, and is merely riding the wave of high oil prices. Instead of saving much of the extra money coming in like OBJ did, leaving more than $20 billion for Yar'adua/GEJ they now have only $7 billion - Mrs. Okonjo-Iwealla is suggesting they will need to spend it over the next couple of months to stabilize the budget !!!

Another golden age, again fueled by oil, may have passed Nigeria by without any real progress in laying the basis for solid economic progress.

ACN has being warning about this trend for a couple of months now. State governments are beginning to feel the pinch - even the state with the highest oil revenue, Akwa Ibom, borrowed 10s of billions of Naira recently, and seems to be seeking another N80 billion loan.

The yellow light is on for Nigeria, but where is a pragmatic president who knows what he is doing to prevent a red light.

http://sunnewsonline.com/new/national/nigerias-n4-93tr-budget-under-threat/
Our Reporter April 20, 2013 No Comments »
By EMEKA OKOROANYANWU

Nigeria’s ability to finance its N4.93 trillion 2013 budget may run into a hitch as the Federal Government declared that she was losing N160 billion ($1billion) monthly in revenue following the drop in oil production and in the prices of crude oil at the international market. Total losses, which stemmed from shut-in, due to Force Majeure declared by oil companies, oil theft and illegal bunkering, were put at 300, 000 barrels per day (bpd) by the Finance Minister and Coordinating Minister of the economy, Dr. Ngozi Okonjo-Iweala.

Addressing a press conference, at the sidelines of the ongoing World Bank/ International Monetary Fund (IMF) meetings in Washington D.C, the minister said the briefing was important because of the avowed transparency in the President Jonathan’s administration. The Nigerian National Petroleum Corporation (NNPC) had said last Tuesday that oil production fell below projections in the first quarter due to crude theft and pipeline sabotage. The current production, according to Finance Minster, ranged from 2.1 million bpd to 2.2 million barrels per day, less than an estimated 2.5 million barrels per day for the 2013 budget.

The N4.93 trillion ($31.35 billion) budget for 2013 was based on an assumption of a $79-per-barrel budget oil price, higher than the $75-per-barrel proposed by the Executive and up from $72 for last year’s budget. [size=14pt]With the persistent drop in price of oil in the international market ($97 dollar per barrel as at yesterday), coupled with the monthly N160billion revenue loss, in addition to the shortfalls in other revenues from the Federal Inland Revenue Service (FIRS) and Nigerian Customs, the ability to finance the 2013 budget may be tough if oil production is not restored in good time especially the Shell Nembe, which has shut-in 150,000 barrels of oil per day.[/size]

But the Minster has assured that the $7billion left in the Excess Crude Account (ECA) was enough to stabilise the shortfall within the next three months pending the time the recoveries would be made. She said this is why the Excess Crude Account (ECA) is very important to the country but pointed out that it was very significant for the country to move quickly to recover production.

The Federal Government sets a price per barrel when calculating oil revenue in the budget, and saves any money collected above that level in the ECA to meet spending shortfalls. Already, Okonjo-Iweala said President Jonathan has directed the Nigeria Navy to go after the oil thieves and would also be meeting with the oil chiefs next week, with a view to collaborating with them on how to restore the damaged pipelines by the oil thieves as well as finding a lasting solution to the malaise.

I have been commenting about this for a long time.this government is worse than even the very bad gowon/IBB/shagari in terms of economic management. GEJ has expanded the size of government without a corresponding increase in the capacity of the economy .everyday, it is employment galore in the useless civil service further burdening the public purse with an unnecessary increase in recurrent expenditure .
Despite the oil boom,the government is still borrowing money . At the rate this bastard is going, do not be surprised if our debt cube comes larger the $35 billion which obj paid off.
Meanwhile,some idiots will come here and start talking about a glorified bus stop(airport) or warehouse (seaport).

Hypocrite Koruji!!!!!!!
When your godfather, the big criminal himself, almighty Tinubu suggested to the economic team to discontinue savings in ECA and SWFund, and share all proceeds to tiers of government, you guys came out enmasse to support him. Again, when National Assembly increased oil benchmark from $75 proposed by FG to $79, most of you took side with Tambuwal forgetting that it is the difference in this benchmarks that is saved in ECA and SWF.

What the economic team headed by Okonjo-Iweala foresaw over a year ago is what you are seeing now. For your information, members of that team are very intelligent chaps and are among the best this country can offer so keep calm. No need to panic. The Nigerian economy is strong. Ok?

B4 talking out of your behind why don't you show the world my support for Tinubu on this statement. Unlike you people who's sole purpose in life seems to be promoting GEJ - even if his plan is to hack your limb for his dinner- I don't support people blindly. Disagree with Tinubu if you must but don't accuse me blindly.

The Nigerian economy is strong is an illusion of petro-dollars. Just pray that oil prices remain high.

Goddex: Hypocrite Koruji!!!!!!!
When your godfather, the big criminal himself, almighty Tinubu suggested to the economic team to discontinue savings in ECA and SWFund, and share all proceeds to tiers of government, you guys came out enmasse to support him. Again, when National Assembly increased oil benchmark from $75 proposed by FG to $79, most of you took side with Tambuwal forgetting that it is the difference in this benchmarks that is saved in ECA and SWF.

What the economic team headed by Okonjo-Iweala foresaw over a year ago is what you are seeing now. For your information, members of that team are very intelligent chaps and are among the best this country can offer so keep calm. No need to panic. The Nigerian economy is strong. Ok?

koruji: B4 talking out of your behind why don't you show the world my support for Tinubu on this statement. Unlike you people who's sole purpose in life seems to be promoting GEJ - even if his plan is to hack your limb for his dinner- I don't support people blindly. Disagree with Tinubu if you must but don't accuse me blindly.

The Nigerian economy is strong is an illusion of petro-dollars. Just pray that oil prices remain high.

what's this one yapping about?

Goddex: Hypocrite Koruji!!!!!!!
When your godfather, the big criminal himself, almighty Tinubu suggested to the economic team to discontinue savings in ECA and SWFund, and share all proceeds to tiers of government, you guys came out enmasse to support him. Again, when National Assembly increased oil benchmark from $75 proposed by FG to $79, most of you took side with Tambuwal forgetting that it is the difference in this benchmarks that is saved in ECA and SWF.

What the economic team headed by Okonjo-Iweala foresaw over a year ago is what you are seeing now. For your information, members of that team are very intelligent chaps and are among the best this country can offer so keep calm. No need to panic. The Nigerian economy is strong. Ok?

What stops the FG from having ECA and SWF from its own 56% allocation? Must it also take from the SG and LG portions?

Thank you for this observation.

hercules07:

What stops the FG from having ECA and SWF from its own 56% allocation? Must it also take from the SG and LG portions?

hercules07:

What stops the FG from having ECA and SWF from its own 56% allocation? Must it also take from the SG and LG portions?

In your infinite wisdom, when they take it from there, they will finance Nigerian budget from where?

singing with 2face#
e be like say them want to tell us another story again ohh