The Federal Executive Council (FEC) has approved a new National Petroleum Policy initiated by the Ministry of Petroleum Resources, which would place a cap on the proportion of oil revenue that can be spent by the federal government, THISDAY reports.
A statement from the petroleum ministry said that the policy was approved at Wednesday’s FEC meeting, held in Abuja. Key highlights of the policy showed that it seeks to limit the amount of oil revenue that can be spent by the federal government, while a certain percentage would be swept into the Sovereign Wealth Fund (SWF) for future generations and funding of key infrastructure projects.
“Under the petroleum policy, the government will agree to a cap on the proportion of petroleum revenue that can be spent on current expenditure. From the remainder, the government will put aside an agreed percentage of petroleum revenue to the Sovereign Wealth Fund, to be dedicated for capital items and for future generations,” it said.