Identifier
Created
Classification
Origin
07ABUJA2177
2007-10-10 14:53:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abuja
Cable title:
NIGERIA ADJUSTING OIL REFERENCE PRICE IN 2008
how-toVZCZCXRO5794 RR RUEHMA RUEHPA DE RUEHUJA #2177 2831453 ZNR UUUUU ZZH R 101453Z OCT 07 FM AMEMBASSY ABUJA TO RUEHC/SECSTATE WASHDC 1170 INFO RUEHZK/ECOWAS COLLECTIVE RUEHOS/AMCONSUL LAGOS 8058 RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS ABUJA 002177
SIPDIS
SENSITIVE
SIPDIS
DEPARTMENT PASS TO USTR LAGAMA
TREASURY FOR RICHARD HALL/DAN PETERS
USDOC FOR 3317/ITA/OA/KBURRESS AND
3130/USFCS/OIO/ANESA/DHARRIS
E.O. 12958: N/A
TAGS: EFIN EPET ECON PGOV PREL NI
SUBJECT: NIGERIA ADJUSTING OIL REFERENCE PRICE IN 2008
BUDGET
REF: A. ABUJA 01954
B. ABUJA 01973
SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY.
UNCLAS ABUJA 002177
SIPDIS
SENSITIVE
SIPDIS
DEPARTMENT PASS TO USTR LAGAMA
TREASURY FOR RICHARD HALL/DAN PETERS
USDOC FOR 3317/ITA/OA/KBURRESS AND
3130/USFCS/OIO/ANESA/DHARRIS
E.O. 12958: N/A
TAGS: EFIN EPET ECON PGOV PREL NI
SUBJECT: NIGERIA ADJUSTING OIL REFERENCE PRICE IN 2008
BUDGET
REF: A. ABUJA 01954
B. ABUJA 01973
SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY.
1. (SBU) The GON has announced that it plans to use an oil
reference price of USD 53.8 per barrel in the upcoming 2008
Budget for allocations to the Excess Crude Account (ECA).
The upcoming budget will make more conservative assumptions
regarding oil production to take into account supply
disruptions in the Niger Delta. The GON's goal is to ensure
adequate support for government expenditures while
contributing to the ECA. The Finance Minister has admitted
that Nigeria's ECA is "Extra-Constitutional." Nonetheless,
for the moment state governors are not actively challenging
the ECA contributions (which otherwise would go in part to
them).
2. (SBU) The Central Bank of Nigeria announced October 2 that
foreign currency reserves had reached USD 46.7 billion. The
CBN considers that level of reserves adequate for up to 25
months of imports. Using a different set of measures for oil
industry-related imports, the IMF considers Nigeria's
reserves adequate for 13 months. Both IMF Rep and World Bank
Country Director told Econcouns that they consider the
current pace of reserves accumulation to be healthy and on
track.
PIASCIK
SIPDIS
SENSITIVE
SIPDIS
DEPARTMENT PASS TO USTR LAGAMA
TREASURY FOR RICHARD HALL/DAN PETERS
USDOC FOR 3317/ITA/OA/KBURRESS AND
3130/USFCS/OIO/ANESA/DHARRIS
E.O. 12958: N/A
TAGS: EFIN EPET ECON PGOV PREL NI
SUBJECT: NIGERIA ADJUSTING OIL REFERENCE PRICE IN 2008
BUDGET
REF: A. ABUJA 01954
B. ABUJA 01973
SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY.
1. (SBU) The GON has announced that it plans to use an oil
reference price of USD 53.8 per barrel in the upcoming 2008
Budget for allocations to the Excess Crude Account (ECA).
The upcoming budget will make more conservative assumptions
regarding oil production to take into account supply
disruptions in the Niger Delta. The GON's goal is to ensure
adequate support for government expenditures while
contributing to the ECA. The Finance Minister has admitted
that Nigeria's ECA is "Extra-Constitutional." Nonetheless,
for the moment state governors are not actively challenging
the ECA contributions (which otherwise would go in part to
them).
2. (SBU) The Central Bank of Nigeria announced October 2 that
foreign currency reserves had reached USD 46.7 billion. The
CBN considers that level of reserves adequate for up to 25
months of imports. Using a different set of measures for oil
industry-related imports, the IMF considers Nigeria's
reserves adequate for 13 months. Both IMF Rep and World Bank
Country Director told Econcouns that they consider the
current pace of reserves accumulation to be healthy and on
track.
PIASCIK