The Nigerian government, ignoring a warning by the Central Bank, has released 198 billion naira (around $1.7 billion) in excess money from oil sales to the country's 36 states, press reports said Thursday.
The reports, quoting the state-run News Agency of Nigeria, said that the money was released Wednesday at a meeting of the Federation Accounts Allocation Committee.
Central Bank of Nigeria (CBN) Governor Joseph Sanusi on Tuesday expressed opposition to spending the excess revenue, derived as a result of the rise in the price of a barrel of oil last year to an average 36 dollars.
Sanusi warned that the Nigerian economy was already too liquid and the release of the oil fund moneys would further overheat the economy.
He said inflation could worsen and the value of the national currency, the naira, could further be eroded.
Annual inflation was running at 17.1 percent in October last year before falling to 15.4 and 14.5 percent in November and December respectively.
The naira has weakened significantly against the dollar in the past year, dropping to a current 125 naira to the greenback from 85 in January 2000.
.—AFP.
©--Agence France Presse 2001.
© 2001 Mena Report (www.menareport.com)
