Mobilising domestic resources and diversifying the economy 511. According to the CSAR, the government of Nigeria has attempted to diversify the economy and mobilise domestic resources better through port concessions, reforming the customs service, increasing tariffs on utilities, expanding businesses by creating micro-credit facilities, consolidating the banking sector, and establishing a Revenue Mobilisation, Allocation and Fiscal Committee. 512. Several challenges remain, however. The economy is still heavily dependent on crude oil revenues, the manufacturing sector remains weak, and the agricultural sector is still not able to meet the food requirements of the economy. In order to diversify effectively for sustainable development, the CSAR suggests: developing agriculture and other sectors to create jobs and reduce poverty; creating public awareness of macroeconomic policies for sustainable development; capping agricultural-sector interest rates at 5 per cent to increase agricultural production; making food security a priority (particularly food storage, processing and packaging) in order to reduce wastage and encourage farmers to increase output; promoting rural information centres to improve access to information on markets and services; and granting soft loans to members of the youth corps on completion of their service so as to enable them to start businesses. Vulnerability to internal and external shocks 513. The CSAR notes that recent policy measures have been fairly successful in mitigating Nigeria’s vulnerability to internal and external shocks. It observes, for example, that since 2003 Nigeria’s current account surplus balance has increased from -3.4 per cent of GDP in 2002 to 20 per cent in 2005. Net foreign assets have also increased in the past five years from 18.14 per cent of GDP in 2002 to 25.96 per cent and 29.43 per cent in 2004 and 2005 respectively. 514. Other major steps taken by Nigeria to reduce its vulnerability to internal and external shocks include: benchmarking the budget on an oil price that is lower than the actual market price in order that it may act as a cushion against future shocks; better prioritising capital budget expenditures; establishing a formal CMC to match expenditures to revenues, manage bulk releases of the capital budget and ensure that deficit ceilings are not breached; ensure collaboration between the executive and the legislature in estimating annual budgets; implementing value-for-money measures through the Due Process Office; estimating budgets for 2003 to 2005 using the very clear and transparent objectives of the newly introduced Fiscal Strategy Paper (this has undoubtedly improved the allocation process); establishing macroeconomic stability through monetary policy; and auctioning foreign exchange by issuing CBN and Treasury bills. 515. While acknowledging these positive developments, the CSAR expresses concerns about the overwhelming dependence of the economy on oil revenue. It is also concerned about persistent social unrest, particularly in the volatile oil-producing Niger Delta region where unrest is caused by 159