Yemisi Izuora/Joseph Bakare
Despite prediction that oil price in the world market would remain low in 2016, analysts at FocusEconomics expect Nigeria’s economy to grow 4.1 percent this year spurred by a stable political environment and increased government spending on social welfare and infrastructure.
Permanent Secretary of the Finance Ministry, Mahmoud Isah Dutse, said “shut-ins, shut-down of production for repairs and production shortfall due to technical hitches at different terminals throughout the month” had a negative impact on crude oil and gas revenue.
He said there was a revenue loss of $143.96 million because of a reduction in export sales and a drop in the average price of crude to $43.40 in November from $49.58 in October.
Nigeria is expected to distribute N387.771 billion to its three tiers of government, that is federal, state and local, for the month of January, including revenues, cash from VAT, gains on the exchange rate and refunds from the state oil company of N6.330 billion.
Dutse said $150 million in dividends from the Nigeria Liquefied Gas Company had already been distributed in December.
The Excess Crude Account, Nigeria’s rainy day fund, remained unchanged at $2.258 billion.