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States FAAC From January To August - Politics (3) - Nairaland

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Re: States FAAC From January To August by umar344(m): 12:28pm On Nov 22, 2023
Hmm jigawa among the top 10
Re: States FAAC From January To August by codemaniacs: 12:42pm On Nov 22, 2023
casualobserver:


If that is the angle you are coming from, You have an education deficiency if you don’t know that the oil industry is less than 15% of Nigeria’s GDP.

We are talking about revenue. The oil industry is becoming less and less a source of government revenue. Crude and gas are the biggest source of official forex but I am sure you will also argue ignorantly when I tell you Nigeria gets more forex from diaspora remittances than it gets from oil. Your cousin abroad who sends money to his parents bring in more forex for the country than Oil…..Shocking I know…but true!!!

Our economy has never been an oil economy. Our government revenue had been dependent on oil due to laziness. Don’t confuse the 2! The only major significance of the oil industry to Nigeria is official source of forex.

The largest companies in Nigeria are not oil companies. Of the top 10 listed companies in Nigeria only 1 is oil related and it is no 10 on the list and it is almost 1/5th the size of the company in no 5 slot which is a food company!
Nigerias richest men are not oil related. Food, telecoms, banking is where our economy is. Oil is really only important for forex. The money we are sharing every month, most of it is company tax, vat and customs duty. Pletase go and verify.

Crude Oil is important to transportation, providing electricity to houses, aviation fuel, plastics, electricity to businesses, electricity to companies you claim are biggest in Nigeria.

You did not list the largest companies in Nigeria yet you're saying what you don't know.

you're wrong and you suffer from mis-education.
Re: States FAAC From January To August by ednut1(m): 1:03pm On Nov 22, 2023
SoNature:
Interesting to see states with no single drop of oil and bring nothing to the centre like Katsina, Borno, Kano, Oyo and Jigawa getting more from the centre than states with crude oil like Edo, Imo, Abia, Anambra and Ondo. Meanwhile, crude oil sales account for over 85% of federal government earnings. Niger Delta states have been scammed!
what are they using the one they got to do Especially delta and bayelsa

2 Likes

Re: States FAAC From January To August by casualobserver: 1:06pm On Nov 22, 2023
codemaniacs:


Crude Oil is important to transportation, providing electricity to houses, aviation fuel, plastics, electricity to businesses, electricity to companies you claim are biggest in Nigeria.

You did not list the largest companies in Nigeria yet you're saying what you don't know.

you're wrong and you suffer from mis-education.

My friend you are either really daft or you clearly do not understand economics. The crude you are talking about, will their workers not eat? Will they not wear clothes, do they not make phone calls? They perform a function like every other industry.

This started as a discussion about government revenue but since you want to go off course, I will go there with you. Every industry is important and all are interlinked and dependent on each other but if you analyze them by what they contribute:

Economy/Employment:
The oil industry employs less people than agriculture, transport, banks, telecoms, education, health etc. it is a component of the economy, it fuels the economy but it is not the economy…..it never never ever has been! I was even being generous when I said thee oil industry was less than 15% of our economy. Since you decided to respond with this nonsense, I decided to fact check…..it is actually less than 6%!

Revenue:
The advent of crude and the removal of resource control and financial autonomy made us lazy so we depended on crude for govt revenue but the withholding of allocations by Obasanjo and Tinubu’s response to increasing IGR has led governments at state and federal levels to up their game and increase non oil revenues improve tax collection etc etc. now oil receipts as a percentage of total government revenues is less than 50%. Like I said to you 30% of the mon eh shared I. September came from VAT. Where is thee most VAT collected….Lagos…..Lagos is not an oil economy. If you look at many states they make more money from IGR than they get from FAAC, dont forget FAAC itself is oil + vat + company tax + customs duty, so even the FAAC they are distributing, oil revenue is less than half of it and states are generating more IGR than the whole FAAC. That should tell you oil is no longer as important as a source of govt revenue as you think. It’s importance is for forex.

Forex: this is where oil shines because we export very little. However in recent times due to more Nigerians living abroad, diaspora remittances have matched and in some years (of low oil production/low oil prices) exceeded our forex revenues from oil sector.

Nigeria makes most of its forex today from diaspora remittance. However that remittance is not official, it is only for official forex that we are dependent on oil revenues.

https://punchng.com/oil-revenues-vs-diaspora-remittances/

Read the article from PWC

https://www.pwc.com/ng/en/pdf/the-economic-power-of-nigerias-diaspora.pdf

https://businessday.ng/exclusives/article/nigerias-diaspora-remittances-exceed-oil-receipts-for-4yrs-running/

2 Likes 1 Share

Re: States FAAC From January To August by codemaniacs: 1:37pm On Nov 22, 2023
casualobserver:


My friend you are either really daft or you clearly do not understand economics. The crude you are talking about, will their workers not eat? Will they not wear clothes, do they not make phone calls? They perform a function like every other industry.

This started as a discussion about government revenue but since you want to go off course, I will go there with you. Every industry is important and all are interlinked and dependent on each other but if you analyze them by what they contribute:

Economy/Employment:
The oil industry employs less people than agriculture, transport, banks, telecoms, education, health etc. it is a component of the economy, it fuels the economy but it is not the economy…..it never never ever has been! I was even being generous when I said thee oil industry was less than 15% of our economy. Since you decided to respond with this nonsense, I decided to fact check…..it is actually less than 6%!

Revenue:
The advent of crude and the removal of resource control and financial autonomy made us lazy so we depended on crude for govt revenue but the withholding of allocations by Obasanjo and Tinubu’s response to increasing IGR has led governments at state and federal levels to up their game and increase non oil revenues improve tax collection etc etc. now oil receipts as a percentage of total government revenues is less than 50%. Like I said to you 30% of the mon eh shared I. September came from VAT. Where is thee most VAT collected….Lagos…..Lagos is not an oil economy. If you look at many states they make more money from IGR than they get from FAAC, dont forget FAAC itself is oil + vat + company tax + customs duty, so even the FAAC they are distributing, oil revenue is less than half of it and states are generating more IGR than the whole FAAC. That should tell you oil is no longer as important as a source of govt revenue as you think. It’s importance is for forex.

Forex: this is where oil shines because we export very little. However in recent times due to more Nigerians living abroad, diaspora remittances have matched and in some years (of low oil production/low oil prices) exceeded our forex revenues from oil sector.

Nigeria makes most of its forex today from diaspora remittance. However that remittance is not official, it is only for official forex that we are dependent on oil revenues.

https://punchng.com/oil-revenues-vs-diaspora-remittances/

Read the article from PWC

https://www.pwc.com/ng/en/pdf/the-economic-power-of-nigerias-diaspora.pdf

https://businessday.ng/exclusives/article/nigerias-diaspora-remittances-exceed-oil-receipts-for-4yrs-running/




Crude oil is the rock of Nigeria's economy. Anything you read anywhere is nonsense.

You're very daft and you lack intelligence to engage in economic discussions..

what you're talking about is sale of crude oil that is not refined... refined crude oil into its other products makes Nigeria billions of dollars.

I'm not the one that said Nigeria should not refine their own crude oil.. In fact, Nigeria is so rich from the sale of un-refined crude oil that it can afford to import refined products of crude oil and sell it to the public..

you get and believe information from organisations that are meant to keep you dull and in slavery...

you have a long way to go before you can have engage in intelligent and intellectual discussions..
Re: States FAAC From January To August by casualobserver: 1:40pm On Nov 22, 2023
codemaniacs:


Crude oil is the rock of Nigeria's economy. Anything you read anywhere is nonsense.

You're very daft and you lack intelligence to engage in economic discussions..

what you're talking about is sale of crude oil that is not refined... refined crude oil into its other products makes Nigeria billions of dollars.

I'm not the one that said Nigeria should not refine their own crude oil.. In fact, Nigeria is so rich from the sale of un-refined crude oil that it can afford to import refined products of crude oil and sell it to the public..

you get and believe information from organisations that are meant to keep you dull and in slavery...

you have a long way to go before you can have engage in intelligent and intellectual discussions..

I back my comments with evidence not all these beer parkour chest beating ignorant uninformed commentary. You have provided none and made no attempt to back a single one of your claims with any evidence and you sit there talking about intellectualism? How did you get a degree if you have one? Did they not teach you how to write a dissertation?

In fact I have since realized that there is no oil company in the top 10 as Seplat is no longer in the top 10. That ofcourse fluctuates with share price but it tells anyone with a brain that the oil industry is not as significant to the economy as we think.

2 Likes

Re: States FAAC From January To August by fregeneh(m): 1:49pm On Nov 22, 2023
codemaniacs:


Crude Oil is important to transportation, providing electricity to houses, aviation fuel, plastics, electricity to businesses, electricity to companies you claim are biggest in Nigeria.

You did not list the largest companies in Nigeria yet you're saying what you don't know.

you're wrong and you suffer from mis-education.
all this things you mention are all in counteries without crude oil

1 Like

Re: States FAAC From January To August by codemaniacs: 1:54pm On Nov 22, 2023
casualobserver:


I back my comments with evidence not all these beer parkour chest beating ignorant uninformed commentary. You have provided none and made no attempt to back a single one of your claims with any evidence and you sit there talking about intellectualism? How did you get a degree if you have one? Did they not teach you how to write a dissertation?

In fact I have since realized that there is no oil company in the top 10 as Seplat is no longer in the top 10.

Your evidence is trash and nonsense..

you don't even know the difference between refined crude oil and un-refined crude oil.

You must have bought your degree with all this nonsense you're spewing..

If Oil both refined and un-refined was not important then Dangote's refinery would have been in operation already for years.

but it won't ever be in operation because the globalists knows it will lead Nigeria to true independence.

you're very un-intelligent.
Re: States FAAC From January To August by codemaniacs: 1:56pm On Nov 22, 2023
fregeneh:
all this things you mention are all in counteries without crude oil

exactly...

Countries without crude oil also need refined by-products of crude oil to run their countries and economies.
Re: States FAAC From January To August by fregeneh(m): 2:02pm On Nov 22, 2023
codemaniacs:


exactly...

Countries without crude oil also need refined by-products of crude oil to run their countries and economies.
yes! But they`re not making their money from crude sales

1 Like

Re: States FAAC From January To August by codemaniacs: 2:14pm On Nov 22, 2023
fregeneh:
yes! But they`re not making their money from crude sales

Again exactly...

that means countries with crude oil are making money from such countries.

they are making money because they use their continental currency and according to the "World Slavery Bank" and "International Slavery Fund" their population figures are okay..

but when it comes to Nigeria our population figures are over-stated and inflated to suit the "World Slavery Bank" and "International Slavery Fund" agenda against black people and throught their anti-African inflated figures they label Nigeria as a broke and poor country .
Re: States FAAC From January To August by COMPAQ(m): 2:16pm On Nov 22, 2023
casualobserver:


I back my comments with evidence not all these beer parkour chest beating ignorant uninformed commentary. You have provided none and made no attempt to back a single one of your claims with any evidence and you sit there talking about intellectualism? How did you get a degree if you have one? Did they not teach you how to write a dissertation?

In fact I have since realized that there is no oil company in the top 10 as Seplat is no longer in the top 10. That ofcourse fluctuates with share price but it tells anyone with a brain that the oil industry is not as significant to the economy as we think.

Just to point out that almost all oil companies (Shell, Mobil, Chevron, Agip, Total, Eroton, Aiteo) are not listed on the stock exchange, hence why they wouldn't be on this list.
Re: States FAAC From January To August by casualobserver: 2:30pm On Nov 22, 2023
COMPAQ:


Just to point out that almost all oil companies (Shell, Mobil, Chevron, Agip, Total, Eroton, Aiteo) are not listed on the stock exchange, hence why they wouldn't be on this list.

I agree but nonetheless, the oil industry is not as big as we think it is. There are also private non-oil companies that are not on the list, so it works both ways. You would think that if indeed the oil sector was that big, those that are listed would occupy prime position..no?


As a portion of our overall economy, listed and unlisted, private and public, local and foreign, The entire Oil AND gas sector is less than 6% of our economy.

In any event, the important stats are represented pictorially below.

1 Like

Re: States FAAC From January To August by fregeneh(m): 2:33pm On Nov 22, 2023
codemaniacs:


Again exactly...

that means countries with crude oil are making money from such countries.

they are making money because they use their continental currency and according to the "World Slavery Bank" and "International Slavery Fund" their population figures are okay..

but when it comes to Nigeria our population figures are over-stated and inflated to suit the "World Slavery Bank" and "International Slavery Fund" agenda against black people and throught their anti-African inflated figures they label Nigeria as a broke and poor country .
countries wiht crude makes money from the ones with none but that dose not mean the majority of their eanings is from crude
Re: States FAAC From January To August by codemaniacs: 2:36pm On Nov 22, 2023
fregeneh:
countries wiht crude makes money from the ones with none but that dose not mean the majority of their eanings is from crude

In Nigeria's case, majority of it's revenue is from crude especially since Nigeria is a country with crude oil that functions like a country that does not have crude oil.
Re: States FAAC From January To August by Spiff20(m): 2:37pm On Nov 22, 2023
Delta received the highest, spent the highest after Lagos, and borrowed the highest. What are they doing in that state sef?
Re: States FAAC From January To August by fregeneh(m): 2:51pm On Nov 22, 2023
codemaniacs:


In Nigeria's case, majority of it's revenue is from crude especially since Nigeria is a country with crude oil that functions like a country that does not have crude oil.
that is not true,yes majority of our FX is from crude but if you put all total revenue in a year together crude oil sales is not thd major
Re: States FAAC From January To August by codemaniacs: 3:17pm On Nov 22, 2023
fregeneh:
that is not true,yes majority of our FX is from crude but if you put all total revenue in a year together crude oil sales is not thd major

That's what they ( Nigerian politicians and the b:rits ) want Nigerians to believe.

So that they can continue to st:eal oil money.
Re: States FAAC From January To August by fregeneh(m): 3:19pm On Nov 22, 2023
codemaniacs:


That's what they ( Nigerian politicians and the b:rits ) want Nigerians to believe.

So that they can continue to st:eal oil money.
ok!
Re: States FAAC From January To August by Raf4: 3:21pm On Nov 22, 2023
SoNature:
Interesting to see states with no single drop of oil and bring nothing to the centre like Katsina, Borno, Kano, Oyo and Jigawa getting more from the centre than states with crude oil like Edo, Imo, Abia, Anambra and Ondo. Meanwhile, crude oil sales account for over 85% of federal government earnings. Niger Delta states have been scammed!

Have you considered what those states are contributing to the federation accounts? e.g VAT, mining licences/royalty, customs duty etc being generated in those states are paid into the Fed a/c and all these determine what the state's share of FAAC will be.
Re: States FAAC From January To August by COMPAQ(m): 4:15pm On Nov 22, 2023
casualobserver:


I agree but nonetheless, the oil industry is not as big as we think it is. There are also private non-oil companies that are not on the list, so it works both ways. You would think that if indeed the oil sector was that big, those that are listed would occupy prime position..no?


As a portion of our overall economy, listed and unlisted, private and public, local and foreign, The entire Oil AND gas sector is less than 6% of our economy.

In any event, the important stats are represented pictorially below.

Well I agree wit you that Oil and Gas is really a small part of our GDP.

The reason why it plays an outlandish part in revenues and more so in forex is that a lot of economic activity is informal and unstructured and therefore untaxed, so they don't contribute to government earnings.

Think estate agents that operate in the grey economy and don't pay taxes on agency fees, sales commission earned
Think all those who sell in our markets that don't file any form of tax return
Think all those other informal sectors (barbers, welders, carpenters, hair dressers) that don't file any tax return
Even think of musicians, comedians, actors etc that to not file any tax return
Re: States FAAC From January To August by femi4: 5:19pm On Nov 22, 2023
SoNature:
Interesting to see states with no single drop of oil and bring nothing to the centre like Katsina, Borno, Kano, Oyo and Jigawa getting more from the centre than states with crude oil like Edo, Imo, Abia, Anambra and Ondo. Meanwhile, crude oil sales account for over 85% of federal government earnings. Niger Delta states have been scammed!
The oil belongs to all Nigerians. Its a privilege that its domicile in naija delta

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