The Nigerian government’s gross revenue dropped 42% month-on-month to N497.98 billion ($3.1 billion) in July, because of disruption to oil production caused by thieves hacking into pipelines, the Finance Ministry said Friday.
An online financial website, Platts McGraw Hill Financial, stated this in its report.
“The gross revenue of N497.98 billion received for the month was lower than the Naira 863.02 billion received in the previous month,” the ministry said in a statement.
“This was due to continuous theft of crude oil, leakages, pipeline breaks at various terminals, high-pressure compressor failures and repair work.”
Africa’s top oil producer was forced to withdraw N115 billion from its oil windfall savings account to provide money shared out between Nigeria’s 36 states to pay public workers and finance capital projects for July, the ministry said.
Oil accounts for more than 85% of Nigeria’s export earnings.
Finance Minister Ngozi Okonjo-Iweala said in July that Africa’s top oil producer’s revenues were dwindling due to the loss of about 400,000 b/d of its oil production to pipeline sabotage, illegal bunkering and large-scale theft.
Data released by Nigeria’s central bank so far this year, has shown that oil production has been lower than the 2.53 million b/d assumption used by the government for the purpose of revenue calculation in the 2013 budget.
Oil theft, known in Nigeria as illegal bunkering, is a major reason the country has been unable to produce anywhere near its installed capacity of around 3.2 million barrels per day.



http://thecitizenng.com/business/nigerias-oil-revenue-drops-by-42/

Oil accounts for a major share of Nigeria's revenue. The figure should be close to 90% of total revenue.

If Nigeria can't secure that important source from thieves and vandals, in spite of increasing budget for security, then there is a major problem.

If they can't do this right, then what can they get right? What do they see as important? Or do they lack the capacity?

Despite the drop in revenue, looting is on the increase.

Expe t more borrow ,borrow.
You have an unserious government .

Pukkah: Oil accounts for a major share of Nigeria's revenue. The figure should be close to 90% of total revenue.

If Nigeria can't secure that important source from thieves and vandals, in spite of increasing budget for security, then there is a major problem.

If they can't do this right, then what can they get right? What do they see as important? Or do they lack the capacity?

The "major problem" is Jonathan. This is why , under him, increased budgeted spending to combat specific problem only deliver greater failure. He has his own plans which are diametrically opposite to what will bring progress for Nigeria.

It is no coincidence oil theft is at its highest level for a while after a President took what appears to be the insane decision that pipeline protection contracts be handed over to militants. Yet wise people know it is not an insane decision. Rather, it is a calculated and deliberate one similar to granting marketers licence, when an election win had to be financed, to individual who had no business getting such. Inevitably the biggest invoices ever were submitted for "fuel importation".

This monumental oil theft is just the revelation of what cynically brazen behaviour wanted to achieve, as an ulterior motive, when marketers licence were handed out to scammers and a nation with a functional Navy decides to put the Fox in charge of the Chicken coop via handing pipeline protection contracts to militants.

Have you noticed that major problems, the ones holding Nigeria back, keeps getting worse under GEJ?

[/quote]

Pukkah: Oil accounts for a major share of Nigeria's revenue. The figure should be close to 90% of total revenue.

If Nigeria can't secure that important source from thieves and vandals, in spite of increasing budget for security, then there is a major problem.

If they can't do this right, then what can they get right? What do they see as important? Or do they lack the capacity?

Spot on!!!

[/quote]

Gbawe:

[/i]The "major problem" is Jonathan. This is why , under him, increased budgeted spending to combat specific problem only deliver greater failure. He has his own plans which are diametrically opposite to what will bring progress for Nigeria.

It is no coincidence oil theft is at its highest level for a while after a President took what appears to be the insane decision that pipeline protection contracts be handed over to militants. Yet wise people know it is not an insane decision. Rather, it is a calculated and deliberate one similar to granting marketers licence, when an election win had to be financed, to individual who had no business getting such. Inevitably the biggest invoices ever were submitted for "fuel importation".

This monumental oil theft is just the revelation of what cynically brazen behaviour wanted to achieve, as an ulterior motive, when marketers licence were handed out to scammers and a nation with a functional Navy decides to put the Fox in charge of the Chicken coop via handing pipeline protection contracts to militants.

Have you noticed that major problems, the ones holding Nigeria back, keeps getting worse under GEJ?[i]

MY COMMENT:

If this being the case then our leaders are not really worth the position they are occupying and that the individual interest if far greater and beyond the collective interest. Is this not the same man that appeared so innocent and was practically begging to be made acting president when his boss died? Power definitely corrupts!

That's what happens when you have a thief as C in C....

Gbawe:


Have you noticed that major problems, the ones holding Nigeria back, keeps getting worse under GEJ?

True. Although it's sad.

The major problems are getting worse. Even in terms of unity, I don't think Nigeria (in times of peace) has ever been more polarized along religious and tribal lines.

Corruption is getting worse especially in the oil and gas sector.

EFCC is on holiday. We are yet to see the reforms of the Police. There's no country borrowing limit. Unemployment is at an all-time high - a paradox when put side by side with the GDP growth rate they usually bandy about.

This is why people have been asking - what has 14 years of democracy brought to the people?

Good news.
Don't ask me why

The God is good.

Thank you God.

This oil theft is to finance 2015. Either that or rank incompetence.

4 Play: This oil theft is to finance 2015. Either that or rank incompetence.

Either of the two is grievous and anti-development.

In all of this, the masses bear the brunt.

this is why I cant take anything the FG or GEJ say seriously. Major issues like this absolutley no sense of direction or willingness to tackle the problem or they treat it with kid gloves. This is gross incompetence or knowing neglect: in this case one is not better than the other as they both demonstarte the total faliure that is the FG of Naija! These clowns in charge have nothing to offer except bread crumbs for the masses whilst they slice up the nutrient rich bread that is Naijas cashflow money between themselves.

Believe Ι̥τ̲̅ or not, the problem resides not with GEJ but with we the citizens. We are the ones that vandalize this pipelines, not forgettin the security officials like the civil defence and army that assist in perpetrating this act, ignorant of collosal consequences as long as our selfish interest is being attained. We are the ones destroying this country

bethnals: this is why I cant take anything the FG or GEJ say seriously. Major issues like this absolutley no sense of direction or willingness to tackle the problem or they treat it with kid gloves. This is gross incompetence or knowing neglect: in this case one is not better than the other as they both demonstarte the total faliure that is the FG of Naija! These clowns in charge have nothing to offer except bread crumbs for the masses whilst they slice up the nutrient rich bread that is Naijas cashflow money between themselves.

Well-said. Jonathan's antecedent and history showed us that this is precisely what he would become. No two ways about it and some of us pointed this out repeatedly. Revelations like this just expose an urgent need for Nigerians to shun sentiments and bias to begin making decisions in a mature and effective manner as others seem able to do while we appear bogged down emotionally by things that do not matter at all.

Let it Drop or may be We will Rise up.
Its really sickening how we so much depend oil rev.
We loose our strength n courage.
We loose our talent
We have neglected our precious resources and land.
We are just chasing the illusion our rulers put for us to be more dependent on them, so the will xploit us n our wealth.

But I think nasiri el-rufai said they used the money to buy ammunition for militant against 2015.

Is Nigeria going to break?

What is the explanation of the government on this? This is a major issue for God's sake.

What's the government doing to stem the massive oil theft?

What's the government doing to stem the massive corruption going on everywhere? Is the EFCC on holiday?

What's the government doing to develop other solid minerals?

What's the government doing to encourage massive industrialization?

What's the government doing to bodaciously attack the decay in infrastructure? What's the government doing DIFFERENTLY?

What's the government doing to improve revenue from taxes?

What's the government doing on the obscene salaries of members of the legislature and the executive?

When will the recurrent expenditure go to about 40%.

When will this government do less of politicking and more of REAL governance?

Oil theft reaches Industrial Scale in Nigeria


http://www.thisdaylive.com/articles/nigeria-s-crude-oil-theft-reaches-industrial-scale/159597/


Nigeria’s crude oil is being stolen on an industrial scale, a report released last week by Chatham House, a UK-based policy think-tank, has shown.

In the report, Chatham House said the country lost at least 100,000 barrels of oil per day (b/d), about five per cent of Nigeria’s total output in the first quarter of 2013, to theft from its onshore and swamp operations alone.

This disclosure came as the Federal Government noted last week that the country might witness a downturn in crude oil export by 2014. The revelation was contained in the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) submitted to the National Assembly by President Goodluck Jonathan.

The Chatham House report said, “Some of what is stolen is exported. Proceeds are laundered through world financial centres and used to buy assets in and outside Nigeria, polluting markets and financial institutions overseas, and creating reputational, political and legal hazards. It could also compromise parts of the legitimate oil business.”

It added that officials outside Nigeria were aware that the problem existed, and occasionally showed some interest at high policy levels, “but Nigeria's trade and diplomatic partners have taken no real action, and no stakeholder group inside the country has a record of sustained and serious engagement with the issue.”

The resulting lack of good intelligence means international actors cannot fully assess whether Nigerian oil theft harms their interests, it stated.

“It is not clear how much of Nigeria’s oil is stolen and exported. The best available data suggest that an average of 100,000 b/d vanished form onshore, swamp and shallow-water areas in the first quarter of 2013.

“This figure does not include what may happen at export terminals. It also assumes the integrity of industry numbers. But whatever the size of the problem, stolen Nigerian oil represents a tiny fraction of global crude supply and consumption, and a diminishing share of rising light sweet crude production globally.

“Global supply exceeded 86.1 million b/d in 2012, while global consumption topped 89 million b/d. Even assuming Nigeria lost 250,000 b/d to theft, this would represent less than 0.003 per cent of global supply,” Chatham House said in the report.

The think-tank goes on to add that Nigeria's dynamic, overcrowded political economy drives competition for looted resources, stating, “Poor governance has encouraged violent opportunism around oil and opened doors for organised crime.
“Because Nigeria is the world's 13th largest oil producer – exports often topped two million barrels per day in 2012 – high rents are up for grabs.”

^^^^^How can any responsible government look on with this kind of mind-boggling theft on a massively grand scale?

Pukkah: ^^^^^How can any responsible government look on with this kind of mind-boggling theft on a massively grand scale?

"Responsible" is the key word. This is not a responsible Government and neither does it pretend to be one. This Government consist of a pack of "don't give a damn" opportunists who never planned to be where they are today and only see this stroke of 'good luck' as an opportunity to loot Nigeria blind. "Fresh air" for Nigeria.

Gbawe:

"Responsible" is the key word. This is not a responsible Government and neither does it pretend to be one. This Government consist of a pack of "don't give a damn" opportunists who never planned to be where they are today and only see this stroke of 'good luck' as an opportunity to loot Nigeria blind. "Fresh air" for Nigeria.

Stop bursting your vein on resources that don't belong to you. You should be concerned on the fall in prize of cocoa not oil.

This is a good news

Gbawe:

"Responsible" is the key word. This is not a responsible Government and neither does it pretend to be one. This Government consist of a pack of "don't give a damn" opportunists who never planned to be where they are today and only see this stroke of 'good luck' as an opportunity to loot Nigeria blind. "Fresh air" for Nigeria.

The government is puerile and the people are docile.

The people that are not docile are steeped in tribalism or have sold their conscience for a pot of porridge or a cup of crude from the theft.

How can a country to which trillions of naira have accrued from 1999 to date still be wallowing in the rot of infrastructure and lack of development?

How can such a landslide scale of theft be so difficult to stem?

How can a government that responds swiftly to an Amaechi ignore cancerous problems such as this?

Why? Why? Why?

Shine It:


Stop bursting your vein on resources that don't belong to you. You should be concerned on the fall in prize of cocoa not oil.

With comments like this, Nigeria (and even Niger Delta) is in trouble.

So who does the resources belong to? How have the resources benefited the 'owners' of the resources? Which aspect of the lives of the 'owners' is developed?

Pukkah:

With comments like this, Nigeria (and even Niger Delta) is in trouble.

So who does the resources belong to? How have the resources benefited the 'owners' of the resources? Which aspect of the lives of the 'owners' is developed?

As long as the rest of Nigeria remain tribalistic, its futile lecturing us on patriotism. It won't wash, I tell ya.

Pukkah:

The government is puerile and the people are docile.

The people that are not docile are steeped in tribalism or have sold their conscience for a pot of porridge or a cup of crude from the theft.

How can a country to which trillions of naira have accrued from 1999 to date still be wallowing in the rot of infrastructure and lack of development?

How can such a landslide scale of theft be so difficult to stem?

How can a government that responds swiftly to an Amaechi ignore cancerous problems such as this?

Why? Why? Why?

ask Google

Shine It:

As long as the rest of Nigeria remain tribalistic, its futile lecturing us on patriotism. It won't wash, I tell ya.

Who is talking about patriotism?

You've not explained the reason why you spread the blanket of 'owner of resources' over massive theft.

This is the issue here.

Oil production in the country has dropped by 150,000 barrels of oil per day following the shut down of the Trans Niger Pipeline by Shell Petroleum Development Company.

Shell has also declared force majeure on Bonny Light exports and gas supply to the Nigerian Liquefied Natural Gas company.

This development is linked to oil theft and is denying the Federal Government of about $7bn annually.

Imagine what the lost funds, if judiciously used, could do to the lives of Nigerians.

What's the Jonathan-led FG's response to this problem?

I wish d oil would jst dry up

FRESH AIR THINGY OR THINGIES.
I just hope that those who wish to get out ,do so before fresh air catch them.
As for me,I dey very far from FRESHAIR

Shine It:


Stop bursting your vein on resources that don't belong to you. You should be concerned on the fall in prize of cocoa not oil.

The likes of you, because of your societal indoctrination and 'victim mentality', are only capable of discriminating against, disenfranchising, robbing, undermining, opposing and sabotaging your fellow citizens so no surprise you talk of Nigerian oil "belonging" to some without realising that everything inside Nigeria the legitimate Nation, not imaginary Biafra or Ijaw republic, belongs to Nigeria and Nigerians. Does proceeds from the sale of Cocoa and oil, including Ondo oil, not go to the centre to be disbursed for use by the people from all corners who are constitutionally the owners of the oil, cocoa or any other cash generator found inside Nigeria? It is when you have your own separate legitimate nation, not the one which only exists in your mind, that you can legally claim everything within her border as your own. I wonder how many times this simple concept has to be explained to criminal-minded and deluded saboteurs like you.

Ultimately, it is no surprise you talk like a thoughtless criminal. Extremely clannish people like you have no time for legality, constitutions, contracts, societal order and other such lawful stipulation that gives legitimacy to Nations, processes, economic activities and everything related to how man should live as a law-abiding and productive citizen of his nation. It is just sad for Nigeria that you do not limit your aberrant talk to your private homes and amongst similarly deluded and hateful souls like yourselves. You must come to the web to make a fool of Nigeria which you probably don't see as your nation anyway despite perhaps carrying her passport. I dare say that Nigeria does not need enemies with 'citizens' like you around in large numbers. Sad little man.