ABUJA, Feb 8 (Reuters) - Nigeria's windfall oil savings account has fallen to around $6.2 billion as the government spent to counter the impact of a global downturn, junior finance minister Remi Babalola said on Monday.
Finance Minister Mansur Muhtar said in October the oil savings, which are supposed to cushion sub-Saharan Africa's second-biggest economy from the impact of any decline in world oil prices, stood at around $7 billion.
'The administration met over $20 billion in the excess crude proceeds account, which has now declined to about $6.2 billion due to its utilisation by all three tiers of government as a result of the impact of the economic recession,' Babalola's office said in a statement.
The OPEC member saves any oil revenue above a benchmark price into the excess crude account, a pillar of IMF-backed reforms launched in 2003.
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(Reporting by Camillus Eboh; Writing by Nick Tattersall) Keywords: NIGERIA OIL/SAVINGS (Reuters messaging: nicholas.tattersall.reuters.com@reuters.net, Lagos Newsroom +234 1 463 0257) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Finance Minister Mansur Muhtar said in October the oil savings, which are supposed to cushion sub-Saharan Africa's second-biggest economy from the impact of any decline in world oil prices, stood at around $7 billion.
'The administration met over $20 billion in the excess crude proceeds account, which has now declined to about $6.2 billion due to its utilisation by all three tiers of government as a result of the impact of the economic recession,' Babalola's office said in a statement.
The OPEC member saves any oil revenue above a benchmark price into the excess crude account, a pillar of IMF-backed reforms launched in 2003.
(For more Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com/ )
(Reporting by Camillus Eboh; Writing by Nick Tattersall) Keywords: NIGERIA OIL/SAVINGS (Reuters messaging: nicholas.tattersall.reuters.com@reuters.net, Lagos Newsroom +234 1 463 0257) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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