Nigeria has lost over
N1.1 trillion in oil revenues
in the last five months -This is due to militants’
attacks on oil installations
in the oil-rich Niger Delta
region – The figure does not
include losses in gas
revenues resulting from
disruptions in gas supplies A report by Daily Trust
indicates that Nigeria has lost
over N1.1 trillion in oil revenues
since the resurgence of
militancy in the oil-rich Niger
Delta region. The report stated oil
installations in the region has
been attacked 28 times
between February 10, 2016 and
end of last month by the
rampaging militants. Niger Delta militants have
been disrupting oil production
in the oil-rich region Niger Delta militants have been
disrupting oil production in the
oil-rich region This figure does not include
losses in gas revenues resulting
from disruptions in gas supplies to domestic power and
industrial plants as well as
export markets. Nigeria is currently struggling to
maintain its crude oil production following a spate of militant
attacks. Militant group, Niger
Delta Avengers continue to
disrupt oil production which in
turn, affects the Nigerian
economy. Nigeria is largely dependent on
proceeds from oil to fund the
budget but the resurgence of militancy in the Niger Delta region has affected the
country’s finances. READ ALSO: Nigerian companies declare losses as recession bites
harder The 2016 budget is based on daily crude production of 2.2
million barrels per day but the
attacks pushed output down by
about a third between April and
August 29. Production dropped by 300,000
bpd in April. In May, production
went down from 600,000 bpd to
1.5m bpd. In June, it dropped by
700,000 bpd, 700,000 bpd in
July and last Thursday output was down to around 1.4m bpd
with 800,000 bpd lost. At an average oil price of $
42.01 and 46.94/barrel and
exchange rate of N197/$ in April
and May, Nigeria was denied
crude oil revenues valued at $
378m or a Naira equivalent of N75billion and N171billion
respectively. The average price of crude oil
in June and July were $48.79
and N41.37 per barrel, while the
value of the local currency was
estimated at N285 and N292 to
a dollar. Nigeria was therefore denied crude oil revenue valued
at N292billion and N262billion
respectively. At about $48.31/barrel and
N305 exchange rate, an
estimated $112m or N341billionn
has been lost in the last 29
days of August. This puts the
total crude oil (excluding gas) revenue shortfall between April
and August 29 at N1.14trillion. The Niger Delta Avengers
attacks have cut Nigeria’s
output to the lowest in almost
30 years, threatening the
projected N820billion oil revenue
proposed in the budget for this year. Also, in the last five months,
supply disruptions have
significantly affected the
country’s oil exports as four
of the nation’s five largest
export streams have been totally suspended. At the moment, Forcados, Qua Iboe, Bonny Light and Brass River are under force majeure,
a legal clause that allows
companies to cancel or delay
deliveries due to unforeseen
circumstances. READ ALSO: 10 signs the Nigerian economy is fully in
recession The federal government has
already informed Nigerians that it will result to borrowing to
fund the 2016 budget due to the situation. The government is already in
the the process of appointing
two lead managers and a
financial adviser to organize the issuance of $1 billion of
Eurobonds this year. According to the Debt
Management Office (DMO), the
sale is the first tranche of a $
4.5 billion Nigeria Global Medium-
Term Notes Issuance Programme
that runs through 2018. The government is also in talks
with the Chinese import-export
bank – China Exim Bank for a $ 21 billion loan to finance the
budget and develop new
infrastructure projects. The situation is even more
worrisome for states. Recently,
some states had to go home
empty after their statutory
allocation was all deducted to
service their debts. About N32 billion was deducted
from states allocations from the
Federation Account in April for
different loans they incurred. Majority of the states across
the country are now struggling
with payment of workers
salaries and projects execution. The situation has also led to
Nigeria losing its status as
Africa’s biggest economy. South Africa has overtaken Nigeria as
Africa’s biggest economy in
dollar terms. Nigeria’s minister of finance,
Mrs Kemi Adeosun had informed
the Nigerian Senate last month
that the country is “technically in recession”. READ ALSO: Again, FG warn banks, companies not to lay off
staff despite economic crunch Meanwhile, renowned economist
and businessman, Mr Atedo
Peterside has predicted that the recession currently
experienced in Nigeria will last
for a long time. Peterside who is also the
President & Founder of Anap
Foundation said business
confidence is low and investors
are holding back on investing in
Nigeria. Source http://davesblog.over-blog.com/2016/08/nigeria-loses-n1-1trillion-oil-revenue-due-to-niger-delta-militant-attacks.html

bad news everywhere

They'll keep disrupting it, they'll keep complaining.

Dia ris God sha

more comments

it's not due to Niger Delta it's due to buhari.
regionalisms or nothing.

True Federalism or nothing.

Joel3:
it's not due to Niger Delta it's due to buhari.

regionalisms or nothing.

.

hmmm more comments

operation crocodile will worsen the situation imagine who will want to work in an environment of tension between the militant and soldiers..

Blame yr jihadist leader bububoko and ishaharam