The Federal Government on Monday said it was losing about 30 per cent of its revenue projection for 2008 to the lingering crisis in the Niger Delta.

The Minister of State for Finance, Mr. Remi Babalola, made this known at the opening of a two-day national conference on the Financing of his administration’s Seven-Point Agenda through the Capital Market in Abuja. He lamented that the crisis had led to a big reduction in the nation’s oil and gas production.

“We are losing 30 per cent of budget revenue to the Niger Delta crisis but the impact of the loss is not being felt because of the domestic crude augmentation to the three tiers of government and high crude oil price in the international market,” he said.

The minister, who delivered an address on behalf of President Umaru Yar’Adua at the event, said the government was determined to tackle the problem in the Niger Delta in a holistic manner.

The Federal Government expects about N2.34tn from oil sales based on the $59 per barrel benchmark plus a further N1.6tn in Petroleum Profit tax and N583bn in royalties.

A 30 per cent cut in oil revenues could translate into losses of N1.2tn, due to militant activity that has shut in 15 per cent of the nations 2.45 million barrels per day capacity.

In the address, Yar’Adua lauded the achievements of the capital market since 1999 and said the lull it was currently experiencing was not abnormal.

The President said, “Despite the lull in the market which is a global phenomenon, the increasing capacity of the capital market to fund multi-billion Naira projects has been demonstrated by creating a platform for superior returns investment in the emerging market.

“It is my conviction that the capital market will continue to play its role as the engine of growth and development by adequately supporting the financing of various initiatives under the seven-point agenda.

“The objectives of my administration in implementing the seven-point agenda include the creation of 10 million jobs and a double-digit Gross Domestic Product growth rate between now and 2011.”

While delivering his own keynote address at the event, Babalola indicated that the Policy Support Instrument which helped the nation to achieve debt reduction from creditor nations and organisations in 2005 would soon be replaced.

The International Monetary Fund had endorsed the PSI initiated by the administration of former President Olusegun Obasanjo to help Nigeria achieve multilateral debt reduction of $18bn.

Babalola said the new programme would reinforce the country’s self-regulation to benchmark its economic performance and pursue policies that would apply to the growth of the economy.

The minister said the reforms initiated by the present administration would soon help the nation to leave its current six per cent growth rate.

He said, “The Nigerian economy is rapidly transforming; the contribution of non-oil sectors such as real estate, services, telecommunications and agriculture have shown remarkable improvements.

“Currently growing above six per cent GDP rate, the economy is set to depart from the six per cent group to an economy with superior GDP growth rate.

“In 2007 alone, the non-oil sector rose by 9.8 per cent, reflecting the impact of reforms already embedded, which we commit to deepen. It is envisaged that the country will end the year with above seven per cent GDP growth rate.”

Babalola also disclosed that the Federal Government would soon publish the legal and regulatory framework for Public Private Partnership projects.

Amongst others, the framework will specify the project areas of interest as well as bidding and approval processes.