Nigeria loses US$4,7b to oil attacks

ABUJA – Nigerian President Olusegun Obasanjo wrote to the Senate on Tuesday, asking to use 600 billion naira in savings from high oil prices to make up for an output shortfall caused by militant attacks.

Nigerian oil production is currently two million barrels per day, Obasanjo said in the letter, about 600 000 barrels a day less than what was envisaged in the budget, because of the shortfall in output. “I wish to seek the understanding of the Senate to make up for the shortfall estimated at 600 billion naira for the federal government budget from the excess crude proceeds,” the letter said.Nigeria’s budget for this year was predicated on an oil price of US$35 per barrel and output of 2,5 million barrels per day.Any earnings from prices above the budgeted level are meant to go into a special savings account known as “excess crude”.”Immediately the budget was passed, the problems in the Niger Delta assumed a different dimension, resulting in an oil production shortfall of about 600 000 barrels per day.Currently we are producing two million barrels per day,” the letter said.Obasanjo said he was keen to see the 2006 budget fully implemented and that the extra funds would be dispersed to all three tiers of government in the normal way.Nampa-Reuters”I wish to seek the understanding of the Senate to make up for the shortfall estimated at 600 billion naira for the federal government budget from the excess crude proceeds,” the letter said.Nigeria’s budget for this year was predicated on an oil price of US$35 per barrel and output of 2,5 million barrels per day.Any earnings from prices above the budgeted level are meant to go into a special savings account known as “excess crude”.”Immediately the budget was passed, the problems in the Niger Delta assumed a different dimension, resulting in an oil production shortfall of about 600 000 barrels per day.Currently we are producing two million barrels per day,” the letter said.Obasanjo said he was keen to see the 2006 budget fully implemented and that the extra funds would be dispersed to all three tiers of government in the normal way.Nampa-Reuters