Ups and Downs of 2007(6)
December 16th, 2006 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
Ogbuotobo Chuks
BUDGET 2007
The budget for 2007 has been hinged on the possible price of oil in the international market at a price $40 per barrel. This is compared to $35 in 2006. Estimated crude oil production is also put at 2.5 million barrels per day as compared to 2.4 million barrels per day in 2006. This figures however are not predicated on certainties. Presently, the price of oil in the international market if falling, and this has caused OPEC to reduce worldwide production by about 1.2 million barrels per day.CONSEQUENCE
If the price of oil exceed the estimated $40 per barrel, it means that there would be a surplus. On the other hand, if it falls below the estimated price, we will have a budget deficit. What we are more concerned with her is what happens if we have a surplus.
The Nigerian nation has been ravaged by poverty and hunger inspote of the wealth that abounds in this nation. We all hop that government does more to eradicate poverty in this country. Let us have good road networks, portable water, a conducive environment for doing business, good schools etc.
Furthermore, government estimates the country’s GDP growth rate of 10 percent as against 7 percent for 2006, with an inflation rate of 9.0 percent as against 10.0 percent in 2006. The dollar equivalent exchange rate will stand at N126 to $1 as against N129 to $1 in 2006.
Like we said earlier, this is the last budget in the life of the present administration, a fact that the national assembly must put into consideration when deliberating on it. The lawmakers should therefore endeavor to go through it with particular attention to ensure that the incoming administration will not find it difficult to carry it through for the remaining part of 2007.
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