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NIGERIA NEEDS $139 OIL PRICE TO FUND BUDGET AS NEITI SEEK PROBE

bd-300x168 NIGERIA NEEDS $139 OIL PRICE TO FUND BUDGET AS NEITI SEEK PROBE bd-300x168 NIGERIA NEEDS $139 OIL PRICE TO FUND BUDGET AS NEITI SEEK PROBE

According to an online reports there are insinuations that funding the Nigeria budget will mean crude oil doing the needful by rising above what is doing currently. This is the only way Nigeria will be able to fund the 2017 budget without stress. A rating organization was quoted saying”Nigeria needs $139 oil price to balance budget” – Fitch – Nigeria is in the worst position among major oil exporting countries in the Middle East, Africa and parts of Europe to have balanced budgets this year, with oil forecast to average $52.50 per barrel, according to Fitch Ratings Limited. The country needs an oil price of $139 per barrel to balance its budget, the global rating agency said in a report on 14 major oil exporting nations in the Middle East, Africa and emerging Europe. The forecast break-even oil prices of other African countries, Angola, Gabon and Republic of Congo were put at $82, $66 and $52 per barrel, respectively. According to Fitch, Saudi Arabia needs an oil price of $74 per barrel; Bahrain, $84; Russia, $72; Kazakhstan, $71; Oman, $75; Azerbaijan, $66; Iraq, $61; United Arab Emirates, $60; Qatar, $51; and Kuwait at $45. It said even after cuts in government subsidies and currency devaluations, 11 of them would not have balanced budgets this year, including Saudi Arabia, Bloomberg reported on Thursday. It was also reported that a group known as the NEITI seeks probe of $15.8bn NLNG dividends – The Nigeria Extractive Industries Transparency Initiative has called on the Federal Government to commission an independent investigation into the status and utilisation of all dividends and loan repayments by the Nigeria Liquefied Natural Gas Limited to the Nigerian National Petroleum Corporation. NEITI’s Executive Secretary, Mr. Waziri Adio, made the call in Abuja while speaking on the agency’s policy brief that examined unremitted funds, economic recovery and oil sector reforms. In the policy brief, NEITI stated, “Since the federation’s shareholding in the NLNG is held through the NNPC, dividends are paid to the NNPC, which should remit same to the federation. However, until 2015, the NNPC failed to remit the interests and dividends from the NLNG to the Federation Account.” Reacting to this, Adio stated that the total outstanding dividends and loan repayments by the NLNG to the NNPC but not remitted to the Federation Account stood at over $15.8bn. The federal government should be proactive in implementing such directives so as to give room to productivity in governance. This call will enable those concern to be up and doing in their various engagements.

 

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