Project Reports

December 18, 2018

2017 BENCHMARKING EXERCISE REPORT

Download Label
March 13, 2018 - 4:00 am
application/pdf
4.33 MB
v.1.7 (stable)
Read →

 This report is the third in the series of benchmarking exercise reports produced by the Nigeria Natural resource Charter (NNRC); carried out to provide an assessment of governance of Nigeria’s petroleum wealth. The first two exercises were conducted and published in 2012 and 2014 respectively. It uses the NRC framework, developed by a diverse set of internationally renowned experts on natural resource management to conduct the assessments. In 2016, the framework was revised to aid a more contextual and detailed approach in obtaining results so as to ensure accurate analysis of the resource sector. This revised framework is the basis for the 2017 edition of the exercise. It analyses the governance of petroleum wealth in Nigeria and identifies crucial changes that have taken place in the sector since the last benchmarking exercise was conducted.For the 2017 edition, the NNRC entered into a partnership with a consortium of organisations.

CSEA contributed to four precepts in the report:

  • Precept 5: Local impacts:The government should pursue opportunities for local benefits and account for, mitigate and offset the environmental and social costs of resource extraction projects.
  • Precept 6: State-owned enterprises:Nationally owned companies should be accountable, with well-defined mandates and an objective of commercial efficiency.
  • Precept 7: Investing for growth: The government should invest revenues to achieve optimal and equitable outcomes, for current and future generations.
  • Precept 8: Stabilizing expenditure:The government should smooth domestic spending of revenues to account for revenue volatility.




Related

 

Nigeria Economic Update (Issue 49)

OPEC weekly basket price reduced from $61.14 to $60.73 per barrel (December 1 8, 2017). Similarly, Global oil benchmark crude sold for as low as $61.22 per barrel during the week, down week-on-week by 1.8 percent. Nigerias Bonny light declined slightly by approximately 1 percent to $63.534. The fall in crude prices came after a sharp rise in U.S. inventories of refined fuel, which suggested that actual demand may be weakening5 (the EIA data shows an increase of 8.5 million barrels of stored fuel). Given that crude oil revenue remains critical to Nigerias budget performance, investments aimed at improving growth and competitiveness of other key sectors is essential to minimize distortions on budgetary expenditure.

Nigeria Economic Update (Issue 42)

The NSE market indices recorded a bear market rally for the third consecutive week in September. Specifically, All-share index and Market Capitalization increased marginally by 0.31 percent to close at 28,335.40 points and N9.73 trillion respectively on September 30, 2016. Major drivers of the rally include; increased trade-volume of financial, agricultural and consumer-goods securities. The continued rise in market indices may be connected to a sustained investor confidence in the agricultural and financial sectors on the account of the ongoing activities of the government and the CBN to stabilize the sectors.

Nigeria Economic Update (Issue 25)

Naira appreciated in the week under review. At the parallel market, naira gained 0.54 percent to exchange at N368/$ on June 23, 20175. This is at the backdrop of injections into the forex market by the CBN to the tune of $195 million at the beginning of the review week, to meet various forex demands. This is amid a slight week-on-week increase in the external reserves (by 0.1 percent to $30.23 billion). Despite the recent naira appreciation, the long-term prospects seem bleak given that the ongoing intervention that seeks to stabilize naira by depleting reserves is unsustainable.