Nigeria
Extractive Industry Transparency Initiative (NEITI) says all of the
country’s oil savings since the inception of its savings history cannot
fund 20 percent of 2017 budget.
In
its second occasional paper series, NEITI said “Nigeria has about three
decades of experience in implementing different oil revenue funds.
However, attempts at oil revenue savings have been plagued by contested
legal frameworks, governance issues and inadequate political will”.
“Nigeria
has one of lowest natural resource revenue savings in the world. The
balance in the three funds (0.5% stabilization fund, ECA and NSIA) is
less than $3.9 billion, not enough to fund 20% of 2017’s federal budget.
“Nigeria’s
$1.5 billion sovereign wealth fund is one of the lowest in the world,
has one of the worst ratio to annual budget (10%), and one of the lowest
SWF per capital ($8), better only than war-torn Iraq and crisis-hit
Venezuela, but not by much.”
In
simpler terms, if Nigeria’s oil savings were shared across the country,
each citizen will have access to only $8, after over 60 years of oil
exploration.
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