ABUJA (AFP) – Nigeria's oil revenue was slashed by half in the first quarter of 2009 compared to the previous quarter, official statistics released Thursday show, as the industry suffered the impact of militant attacks.

The huge slump in oil income dragged down total external trade by 29 percent over the same period last year.

Sales in the first quarter of 2009 fetched the country 735.4 billion naira (4.9 billion dollars/3.4 billion euros), sharply down on the previous quarter, when oil returned 9.86 billion dollars, the National Bureau of Statistics said in its July publication.

"Crude oil export stood at 735.4 billion naira (4.9 billion dollars/3.4 billion euros), a sharp decrease of 734.2 billion naira or 99.8 percent over that of fourth quarter 2008," the Bureau said.

"Total trade figure for the first quarter of 2009 was 1,974.6 billion naira, thus indicating a drop of 572.5 billion naira or 29 percent over that of the fourth quarter of 2008," it said.

"This sharp drop in the value of exports may be attributed to the activities of militants that reduce the quantity of crude exports."

The country's main militant group, the Movement for the Emancipation of the Niger Delta (MEND), has in recent months intensified an armed campaign against the oil majors and government installations in the Niger Delta.

MEND, which says it is fighting for a greater share of the Delta's oil wealth for local communities, declared a 60-day truce on July 15 in response to a government amnesty deal.

The militant group late Tuesday released six foreign hostages in what it said was a "dividend" of the truce.

Nigeria, a member of the Organisation of Petroleum Exporting Countries (OPEC) cartel, and the world's eight largest producer, derives more than 90 percent of its foreign exchange earnings from crude oil exports.

Petroleum Minister Rilwanu Lukman said Wednesday that the nation's oil production has been cut to about 1.5 million barrels per day, less than half of its capacity, by rebel attacks in the main producing region as well as the global economic crisis.

http://news.yahoo.com/s/afp/20090723/wl_africa_afp/nigeriaoileconomyrevenue_20090723190911

is MEND winning?

MEND should not relent. There will be no solution until the oil export is cut to less than 500,000 b/pd.

[center][size=25pt]RIDE ON MEND![/size][/center]

The F.G. should sort out this issue with MEND as soon as possible because this is really getting serious.

Before we know whats happening, the F.G. will declare inability of funds to pay the civil servant and other sectors, probably fuel scarcity might occur which will affect the country as a whole, 

hmmm.

[size=15pt]MEND!!!!!!!!!!!!!!!![/size]

faakay:

The F.G. should sort out this issue with MEND as soon as possible because this is really getting serious.

Before we know whats happening, the F.G. will declare inability of funds to pay the civil servant and other sectors, probably fuel scarcity might occur which will affect the country as a whole,

hmmm.

[size=15pt]MEND!!!!!!!!!!!!!!!![/size]

And just may be we can finally come to round table and talk about future in this geographical expression called Nigeria!

faakay:

The F.G. should sort out this issue with MEND as soon as possible because this is really getting serious.

Before we know whats happening, the F.G. will declare inability of funds to pay the civil servant and other sectors, probably fuel scarcity might occur which will affect the country as a whole,

hmmm.

[size=15pt]MEND!!!!!!!!!!!!!!!![/size]

These lack of payment of salaries and fuel scarcity have they not been recurring decimal for a long time now

With the insincerity of the FG as recently demonstrated by the reversal of PTI upgrade to a University & relocation of same to Kaduna,the oil revenue will soon be cut to a further half till the oppression of the ND is stopped & we begin to practice fiscal federalism.So ahoy MEND

No jobs, no school, people are protesting everyday for salary increment, no good health system, MEND in another corner protesting. The problems are just endless, Naija don scatter into pieces. Pastors we need sound prayers

asha 80:

These lack of payment of salaries and fuel scarcity have they not been recurring decimal for a long time now

Yes it has been happening but I think it will get worst this time

faakay:

Yes it has been happening but I think it will get worst this time

Let it happen self.

asha 80:

Let it happen self.

what's to be gained from it happening.

So that we can shake off this petronationalism that is blinding us in this country.

abegggggggggggg oooooooooooo lets pray for god to stop all dis wahala ooooooooo in oda not to affect the next generation

asha 80:

So that we can shake off this petronationalism that is blinding us in this country.

yeah diversification of the economy is the way to go.

The budget for this year is already in trouble as the country is producing much less oil than its figures are based on. MENDs actions have brought the current deficit to 5% of GDP as of June. The govt will have to borrow to make up the deep deficits that would have acrued by the end of the fiscal year. From 3 million BPD in 2008, Nigeria is now producing only 1.2 million BPD; which amounts to one third of capacity.

Nigeria is in deep, deep trouble.

For so long, we have accepted all sorts of injustice and barbarous levels of wickedness as norm, aside from the extreme levels of pollution; the Niger Delta has suffered the following:
[list]
[li]Odi massacre (2500 dead including; babies, women, children and the elderly)[/li]
[li]20 Niger Delta communities wiped off the surface of Earth since 1999[/li]
[li]50,000 dead since 1999[/li]
[li]The death of Ken Saro Wiwa (a peaceful ND leader)[/li]
[/list]

More than 1.5 million tons of oil, equivalent to one Exxon-Valdez disaster every year for 50 years, have spilled into the delta, poisoning delicate mangrove and rain forest ecosystems and destroying fishing and farming livelihoods.
http://www.pambazuka.org/en/category/comment/57769/print

Yet, up North beasts are allowed to run amock, fighting for sharia to cover the whole country; while the goose that lays the golden egg is slowly poisoned. Isn't this slavery? Thankfully, MEND is "negotiating" with the govt in the only language the oligarchy and their allies understand. Let the worst happen.

Below is an image of how we farm in seas of oil because, as long as money flows and every state gets their share of blood money, no one gives a shit.

So cripple the economy, and maybe reduce MILLIONS OF NIGERIANS, who already have little, to living with nothing is the way to appease MEND? Na we all go suffer the effects of this in the end. The Government already does not care much and most of them have money stashed away for dry season, So I am not sure how this is going to help fix anything in the end. In fact, it is more likely the people will be worse off in the end, and those in power continue to retain power.

@Kobojunkie
The average Nigerian does not gain much from FG money, so won't feel any real change in circumstances.
To prove my point, there has been a sharp drop in revenues (at least 50%) since last year, but life continues for the average person (each senator earns above £12,000.00 basic - much more than the equivalent Western politician!).

Most of the money is spent amongst the Abuja bigwigs. By tightening its hold on their finanfial jugular, MEND will release their iron grip on power and begin the important task of drastically reducing attraction of the centre.

"So cripple the economy, and maybe reduce MILLIONS OF NIGERIANS, who already have little, to living with nothing is the way to appease MEND? Na we all go suffer the effects of this in the end. The Government already does not care much and most of them have money stashed away for dry season, So I am not sure how this is going to help fix anything in the end. In fact, it is more likely the people will be worse off in the end, and those in power continue to retain power."

^This guy has lots of sense.

"The average Nigerian does not gain much from FG money, so won't feel any real change in circumstances."

^Not true. The only difference between nigeria and niger is the oil nigeria has. Immediately we get no revenue from oil, then our economy would crumble into anarchy. We are not a consumer driven economy like the US or an export based one like china. Our only export is raw materials like oil.

Everything in nigeria depends on oil- the banking industry, law firms, accounting firms, even doctors, and house boys- our economy is trickledown. Simple logic-No oil money for Alhaji, no money to get houseboys, no money to give his wife who would use it to buy stuff from the shop or the market. As this loss of oil revenue continues the situation gets worse. I am too busy to explain but if you have one business in nigeria that does not depend on oil revenue- I would be surprised. Another example, the banks in nigeria have gotten a lot of income from governors who stole money in naija. They use some of that money to do magogo and also to pay their staff. From this money, their staff can buy cars, feed their family and pay their children's school fees. If they cannot pay their children's fees all those private schools would not be able to get customers. They would close down and all that would be left is public schools (extreme scenario). So would all the car dealer stores. Honda would pack their bags when no one is buying.

Man know ur economy- or at least take simple economics it would be helpful. By the way I think MEND is a very stupid organization. Simply put nigerians are naturally corrupt- most of those leaders in MEND would end up chopping the same type of money like the nigerian leaders and do the same thing while turning their back on the poor delta people who need it. Nigeria is hopeless, and so is every african country if we continue we are attitude of everyman for himself- one tribe for himself-one family for themselves type of logic.

Nigeria's U.S. crude export rises by 16 percent
By Laolu Akande and Yakubu Lawal

In a development that seems to lend credence to analysts' view that the United States (U.S.) might be looking beyond the strife-torn Middle-East for its energy needs, the U.S. crude oil import from African sources is on the upswing with Nigeria recording a 16.2 percent rise in its crude export to the U.S. last year.

In fact, according to a new report by the International Trade Administration of the U.S. Department of Commerce, other African oil producers even did better than Nigeria in exporting crude to the U.S.

The report came ahead of the eighth yearly U.S.-sub-Saharan Africa Trade and Economic Co-operation Forum scheduled to hold in Nairobi, Kenya, from August 4 - 6, 2009.

Meanwhile, stakeholders in the Nigerian oil and gas industry were yesterday assured that their concerns as raised in the proposed Petroleum Industry Bill (PIB) currently before the National Assembly would be addressed by the lawmakers, especially for the growth of indigenous companies in the sector.

http://www.tehrantimes.com/index_View.asp?code=199211

The more oil money that don't go to the accountable govt coffer the better for the thieves in govt and their MEND henchmen.

Obviously, the hawkish Yaradull thought that military might was the way to quench Niger-Delta agitation, but as a consequence, the economy gets hit even harder.



[center][size=14pt]Dividends of N440bn Security Vote for Niger Delta [/size][/center]
[center]By Les Leba[/center]

The priorities of government in the short and medium term maybe discerned from the size of sectoral revenue allocations in its annual budget. We observed in our article titled: “Yar’Adua’s Embattled Presidency” that the Niger Delta security allocation of N440bn was the largest single sectoral vote in President Yar’Adua’s debut 2008 budget.

The projected expenses for the critical areas of health, education, transportation, water, agriculture, etc, were modest fractions of the huge vote for security in the Delta. Obviously, government’s hope was that the deployment of such a huge direct expenditure for heavy and articulated security weapons for use in the Niger Delta would produce the essential atmosphere of peace that would justify the huge investment.

In turn, the exploitation of the oil resources of the area by the Nigerian government and oil corporations would yield tens of billions of dollars which would redeem the ‘paltry’ sum of about $3bn (N440bn) necessary to keep peace within the region. This was the game plan sold to Yar’Adua by his political and strategic advisers and Mr. President quickly committed to the plan by allocating N440bn for implementation.

The views of well-intentioned critics that Nigeria is not in a state of war and that Nigeria should not wage a war against itself were considered to be the rantings of anti government agents! The government was unwilling to recognize that direct annual allocations to such interventionist agencies such as NDDC had never approached a tenth of the 2008 vote for keeping militancy against perceived federal oppression at bay!

It was unnecessary distraction to draw government’s attention to the accrued ecological fund of over N300bn which remained undisbursed in spite of the ardent pleas of the region and the ‘charitable’ posturing of the ruling class! Needless to say that the N440bn from 2008 budget and N300bn ecological fund would have gone a long way in building vital infrastructure, regenerating despoiled lands and rivers and putting hundreds of thousands of the idle youth force into gainful employment, and consequently redeeming the nation from the evil machinations of idle minds and social deprivations. Surely, such a strategy of youth engagement and infrastructural capacity building would have provided a more enduring platform for sustained peace and the facilitation of crude exploitation in the region!

But no, the ‘patriotic’ advisers and ethnic hawks in government preferred the option of an investment of N440bn on the instruments of violence against fellow Nigerians, with body language which as much as said, “militants are criminals, who must be taught a lesson; by the time the communities in the region are cowered by superior weapons of war, it will be business unlimited for crude oil exploitation”!

The weapons funded with the 2008 budget votes had largely been consolidated by the first quarter of 2009 and about mid May this year, the Military Joint Task Force (JTF) was sufficiently emboldened to embark on a major resurgence of its operations in the area; villages and erstwhile sleepy communities were ravaged, innocent men, women and children were slaughtered, community leaders and chiefs were arrested while others fled into the bush; the mansions of local beneficiaries of the proceeds of oil bunkerings were razed and these erstwhile government political collaborators were declared wanted and remained at large! Government reported the recovery of diaries, accounting records and other documents which listed the affiliates of the hunted ‘militants’.

Government’s reluctance to release the content of the seized documents has give rise to doubts about government’s sincerity in these escapades! Two months or so into the renewed JTF surge, it is clear to all that government’s expectation of early success has become largely misplaced!

In spite of the increased and extensive bombardment, militant activities in the Niger Delta remain unquelled and instead have become more strategic and destructive of oil installations and by extension inflicted serious leakages in our nation’s treasury! The 2009 budget expectation of daily export of about 2.5m barrels has become largely unattainable, and at best, may be less than 50% of this target! It now seems that government may have chosen the wrong option of spending N440bn for securing liberal access to the oil of the Niger Delta.

The government’s spontaneous extension of amnesty to militants and miscreants in the Niger Delta can only be seen as an admission of failure of JTF resurgence and the recognition of the reality of negative returns from the huge 2008 budget investment for security in the Niger Delta.

Perhaps, the obvious success that can be attributed to the JTF push is the separation of the men from the boys in the Niger Delta struggle.

The ostentatious illegal oil merchants parading as militants and other criminal affiliates in the supply chain have readily come forth to disarm while N40bn has been earmarked to implement amnesty. However, the real Movement for the Emancipation of the Niger Delta has demonstrated that in spite of the unconditional release of the MEND leader Henry Orka and the discontinuation of treason charges against him they are not particularly enamoured by the hastily contrived government amnesty.

From their perspective, the issue of amnesty is misplaced! They maintain that amnesty is appropriate as a lifeline for criminals, but not for militants whose motivation is the emancipation and survival of their lands and people. They maintain that it is inapplicable to grant amnesty to victims of oppression and they insist rather that the oppressors who have committed crimes against their people all these years should rather atone for their sins by immediately removing the JTF from their communities and providing a comprehensive agenda for the regeneration of the despoiled lands, rivers and other waterways that have always served as the lifeblood of their people.

They further insist that Nigeria must return to the adoption of true fiscal federalism since this was the only social contract willingly endorsed by their people at the time of independence in 1960.

Other citizens of the Niger Delta who may not display the same aggression or have media access as MEND, however, also feel the pain from the series of injustices they have endured and have consequently become suspicious of government’s sincerity with regard to their welfare. They are quick to identify the consistent postponement of gas-flare-outdates by government over the last two decades, in spite of the life-threatening environmental and health hazards to their people.

They also wonder why the government has refused to disburse the over N300bn ecological fund for ameliorating the sufferings of their people, some of whom no longer know the difference between night and day, and have no farms for food or clean drinking water! These hapless citizens also wonder why their children are required to score much higher cutoff marks than other kids before they can be admitted to colleges and universities which are predominantly funded from revenues derived from their own backyards!

Those Deltans who have visited Abuja and major urban areas in Nigeria are amazed at the construction of highways, mansions and other infrastructure from the funds derived from the Niger Delta while they are deprived of their livelihood by the activities of oil companies which generate Nigeria’s wealth from the Delta region. Those who cannot travel read and see exotic pictures of Dubai, Qatar and the Emirate states which are also oil producing regions but were less preferred destinations to life in the Niger Delta 50 years ago before the discovery of crude in Oloibiri.

Ordinary Niger Deltans also see something wrong in government’s acquiescence to the oil companies’ practice of locating their head offices and providing jobs far away from the Niger Delta where they operate and derive their profits and these Deltans are even more confused when a petroleum University is taken to far away Kaduna when the already existing petroleum institute in Warri is left to decay!

The majority of the victims of oppression in the Niger Delta have lost their voices, but they wait endlessly for beneficent change that refuses to come before they are completely quietly decimated in fulfillment of the wishes of some fellow Nigerians whose fortunes are tied to the elimination of communities in the Niger Delta!

To those Niger Deltans, MEND will be seen as saviour and its recent attack on Atlas Cove, one of Nigeria’s major oil depots outside the Niger Delta may be a wakeup call to recognize the difficulties for a regular army to triumph in a guerilla war spurred by self preservation. It is now time to talk with justice and fiscal federalism as the agenda.


SAVE THE NAIRA, SAVE NIGERIANS!

That income from oil revenue is on the decline is no longer news, we all no the reason behind this downward trend, but I am surprised that government is still pretending as if it is on top of the situation. To be frank the government has lost the battle to cow the militants.

From all indication, MEND is out for a total war and government seems not to appreciate this. Not until the government address the issue of marginalisation and equitable distribution of resources (which are the core issues at stake as stated by MEND in particular and the Niger Delta in general), oil revenue will continue to take a nosedive.

Amnesty or not truth must prevail

Thank God Oh,abeg make we soon get our Niger Delta,its been long comming, when there aint no Oil money to divide in ABJ, I wonder what will hapen mayB they in turn would divert measn to kidnaping too

No matter how you feel about MEND, Things will go as planned. Atleast we have started to see how the other ethnic groups feel about Niger-Deltans Disdain!(Remember Atlas Cove & The yoruba Elders)

It is a shame that fellow Nigerians are already shouting please stop the hostilities look at them no brainers animals in human skin you are happy to leave in bondage.
You have not seen anything yet the tides are turning very soon we all will come out for all out war to fight for our right.
Why can't the other regions in the country support this just cause it does not affect only the Niger Delta but every region in the country.
You have the yoruba people screaming abeg o no involve us o e no concern us na niger delta wahala bloody ingrates lagos will be no where without the funds from the niger delta.
For once we all should stand together to fight these northernization of nigeria.
The fight is not for one region.
After 60 days my guy if your papa,mama and any one you know is Nigeria you better tell them to run because it will be fire raining down from heaven.
Elijah called down fire from heaven so shall these case be we will call fire from heaven to consume these animals.
No hiding place for the wicked.
If the hand refuses to support you cut it off.

With budget implementation below 20%, this means we have extra 30% of the revenue remaining. But why is nothing happening??

it doesn't matter @ all! when it was fully receipted, nothing happened. rather infrastructure degenerated, now that revenue is halved, they are crying cos there's less to steal.
in fact, let them grind this govt to a halt, then maybe they'd be some +ve change.

Nezan:

With budget implementation below 20%, this means we have extra 30% of the revenue remaining. But why is nothing happening??

A clueless government that's faced with insurgencies popping up left and right?

no new oil wells either.

So the oil is running out, thank God.

However, wont "our people" revert to slave trading in the absence of a means to maintain the flamboyant lifestyles they're used to?

After all, the end of the slave trade was what introduced the palm oil trade and from there to cocoa then oil exploration.

"Nigeria needs mending, not re-branding" Prof Wole Soyinka