Excess Crude Drawdown
To Stop
Withdrawals
from Nigeria’s excess crude accounts would stop as from January
2010.
The Minister of State for Finance, Mr. Remi Babalola, said on
Thursday, after a meeting of the Federation Account Allocation
Committee in Abuja, that the decision was informed by an
increase in oil production.
Following militant activities in the Niger Delta region, crude
oil production fell significantly and affected the country's
revenue profile. Consequently, the government had to drawdown on
the excess crude oil account to fund its programmes.
Mr. Babalola said improved oil production has led to a
significant increase in the country's revenue; therefore
eliminating the resort to the excess crude fund.
’’ The total distributable amount for November is N373.6
billion. When compared to last month's figure of N354 billion,
it's a terrific improvement, for this month there was no
augmentation; we didn't take any money from the excess crude
account this month; we actually transferred money to it.’’ The
minister explained.
He said the amount shared for November showed an increase of
N19.268 billion from the figure for October.
Contributors
He also said the amnesty programme and an N88 billion
renewable fees from Mobil Producing Unlimited had also helped to
boost government revenue.
He said the committee resolved that the NNPC would by next month
present a plan on how to pay back a N450 billion obligation fee.
Openness
Babalola also said the Federal Government was committed to
ensuring transparency and accountability of the Federation
Account.
’’We have ensured strict adherence to this mandate by
maintaining openness and fairness thus avoiding what can be
described as the constant temptation of slipping into less
regulated ways of wielding power, of becoming less democratic as
we go along.’’ Mr. Babalola said.
’’At present, we are in the process of embarking on the
publication of a well restructured, more elaborate and a
compendium of all allocations made to the various tiers of
government…There is no better way to achieve integrity and
accountability within government and government transactions
than by promoting transparency and openness,’’ he said.
The amount in the foreign excess crude account stood at 6.4
million dollars and about N6.5 billion in the domestic excess
crude account.
NAN/Yinka
