How far has Nigerian Government been able to fulfill the core
objectives of the Budget with reference to the current situation in
Nigeria?

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Request for Question Clarification by pafalafa-ga on 25 Jun 2003 12:49 PDT

A similar question has been posted by wallex-ga -- are the two of you
one and the same person, or would you like a distinct answer to your
question...?

Hello Stino,

Thanks for your question.  In the year of 2002 the budget deficit for
Nigeria reached 4.9 percent of the GDP.  In the same year the economy
shrank 0.9 percent.  The only bright point is that non-oil GDP rose
5.3 percent.   According to an IMF assessment,

"The Financial System Stability Assessment (FSSA) concluded that the
Nigerian financial system was vulnerable to a number of risks, such as
fiscal indiscipline, the economy's high dependence on volatile oil
prices, and financial abuse. The report noted that there were serious
concerns about the soundness and stability of the banking system."

The overall impression is that the Nigerian government has made little
progress in addressing the core problems facing the Nigerian economy. 
The policies and institutions seem to be crushed under the weight of
corruption and very little oversight.  The enforcement of change in
fiscal policy has no teeth, and although there has been some bright
spots, such as a fall in inflation, the dependance on oil prices, and
the nature of the gross imbalances in the economy keeps recovery a
very long term goal indeed.  Capital spending seems to be out of
control, and very little is being done to secure the economic future
for the Nigerian people.  In March of this year the Nigerian
government pulled out of an IMF program to assist it in its economic
recovery.

Nigeria heads out of IMF and into independence
http://www.afrol.com/News2002/nig009_break_imf.htm

Here are some links to studies on Nigerian economic policy:

IMF Concludes 2002 Article IV Consultation with Nigeria
http://www.imf.org/external/np/sec/pn/2003/pn0301.htm

Political Economy of Oil-Revenue Sharing in a Developing Country:
Illustrations from Nigeria
http://www.imf.org/external/pubs/ft/wp/2003/wp0316.pdf

Nigeria: 2002 Article IV Consultation--Staff Report; Staff Statement;
and Public Information Notice on the Executive Board Discussion
http://www.imf.org/external/pubs/ft/scr/2003/cr0303.pdf

Taxation and Pricing of Petroleum Products in Developing Countries: A
Framework for Analysis with Application to Nigeria
http://www.imf.org/external/pubs/ft/wp/2003/wp0342.pdf

Please feel free to ask for clarification if needed.  I hope this
helps.

watershed-ga