The Assistant Director, Research, Central Bank of Nigeria, (CBN), Adebayo Idowu has said the 2011 budget will foster growth, create more jobs and also consolidate the the Sovereign Wealth Fund (SWF),
Idowu listed the assumptions to include crude oil production of 2.30mb/d; crude oil benchmark price of $75/barrel; Joint Venture cash calls of $5.4 billion; average exchange rate of N150 to $1.00 and target of Gross Domestic Product (GDP) growth rate of 7 per cent and inflation rate of 10 per cent will help put the SWF in good standing. The oil price now stands at $116.9 per barrel as at March 28 and the difference of $51.9 per barrel will be credited to the SWF.
He said the domestic debt service will gulp N503.47 billion, while N38.92 billion is to be expended on external debt service just as the fiscal deficit is projected at 3.6 of GDP. Speaking during the Policy Seminar on the 2011 budget organized by the Chartered Institute of Bankers of Nigeria (CIBN) Idowu said the budget emphasised the nurturing of the SWF to reduce the country’s vulnerability to external oil price shocks, ensure intergenerational equities in the management of oil resource endowments and invest in critical infrastructure.
He said the Nigerian Sovereign Investment Authority (NSIA) was proposed to be established to manage a Nigeria Infrastructure Fund, a Future Generation Fund and a Stabilization Fund in order to achieve similar objectives.
He said the fiscal and monetary authorities represented respectively by the treasury and the central bank have a crucial role in policy coordination, as conflicts ensuing from their in-actions may trigger poor macroeconomic performance. “Typically, to achieve their respective objectives, the central bank deploys monetary policy instruments, while the fiscal authority employs fiscal instruments as embodied in the national budget framework.
Source: http://thenationonlineng.net
Idowu listed the assumptions to include crude oil production of 2.30mb/d; crude oil benchmark price of $75/barrel; Joint Venture cash calls of $5.4 billion; average exchange rate of N150 to $1.00 and target of Gross Domestic Product (GDP) growth rate of 7 per cent and inflation rate of 10 per cent will help put the SWF in good standing. The oil price now stands at $116.9 per barrel as at March 28 and the difference of $51.9 per barrel will be credited to the SWF.
He said the domestic debt service will gulp N503.47 billion, while N38.92 billion is to be expended on external debt service just as the fiscal deficit is projected at 3.6 of GDP. Speaking during the Policy Seminar on the 2011 budget organized by the Chartered Institute of Bankers of Nigeria (CIBN) Idowu said the budget emphasised the nurturing of the SWF to reduce the country’s vulnerability to external oil price shocks, ensure intergenerational equities in the management of oil resource endowments and invest in critical infrastructure.
He said the Nigerian Sovereign Investment Authority (NSIA) was proposed to be established to manage a Nigeria Infrastructure Fund, a Future Generation Fund and a Stabilization Fund in order to achieve similar objectives.
He said the fiscal and monetary authorities represented respectively by the treasury and the central bank have a crucial role in policy coordination, as conflicts ensuing from their in-actions may trigger poor macroeconomic performance. “Typically, to achieve their respective objectives, the central bank deploys monetary policy instruments, while the fiscal authority employs fiscal instruments as embodied in the national budget framework.
Source: http://thenationonlineng.net
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