The revenues generated from petroleum production
constitute a dominant part of the income of the country
currently contributing about 98% to the national budget.
Although the goal of the government is to develop
alternative sources of income and reduce oil sector
dependency, the petroleum revenues will continue to
dominate the national budget in the medium term. The
Government further recognises that petroleum is a non-renewable
resource and subject to volatile international
market prices, and hence understands the need to manage
the resources for the benefit of both the present and
future generations while minimizing the strain on the
government budget. Th e Government also intends to
implement a Petroleum Stabilization Fund to dampen the
impact of volatile oil prices on the budget. Th e Government
has now draft ed the National Petroleum Policy (SSNPP)
Paper to guide the eff ective and sustainable management
of the petroleum sources in the country. Th e Petroleum
Bill is presently under preparation which will be enacted
soon after.