World Bank has faulted the Federal Government’s management of oil revenues, and also warned that the country faces serious challenges in sustaining the momentum of its fiscal consolidation and reserves growth.
The bank’s warning comes ahead of a predicted slowdown in the growth of oil export in the years ahead.
A World Bank’s Nigeria Economic Report for May 2013 noted that Nigeria has made significant progress in the effective management of its oil wealth during the last decade.
It however maintained that institutional weaknesses need to be addressed, saying: “Nigeria made a giant step forward during the 2004-2009 through the establishment of the Excess Crude Account, ECA, fiscal reserve that successfully insulated the country from the sharp swings in oil prices during this period.
For the country to be able to shore up its ECA to the pre-global financial crisis levels of $22 billion, the World Bank said Nigeria will have to limit Federation Account distribution of oil revenues to zero real growth up till 2015.”
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