₦airaland Forum

Mykevp2p:
One question GMB and APC supporters haven't been able to answer is... the money to be recovered from corruption will start from which government? do we go back to 1985 and start probing from there, or do we start probing from Jonathan? Do we probe only PDP members?

For example, Saraki who is being probed for corruption is being angled for senate presidency, do we wish allegations against him away or do we recover from him as well? Hoping on recoveries from corruption to augment budget shortfalls isn't really wise but let's see how GMB will achieve this miracle

bolanto24:
offshore or onshore doesn't matter cos it is in ND land n water

garrix8:
I think it's like this +-:

Whatever amount of oil is produced, a percentage is deducted by the IOC (Cost oil), then the PPT and Royalty is paid to the state (a percentage of the production). The balance is what's shared between the National Oil Company and the IOCs according to the terms of the PSC.

newmuzik:
That's not all, how about money generated from Immigrations?
Money generated from NPA (Nigerian Port Authorities)?
Money generated from FRSC (Federal road safety commission)?
Money generated from Customs?

and other parastatals

I tell you, if you get all the facts right you will see that Nigeria earn over N15 trillion annually.

ekolina:
. What you did is just to calculate the revenues without calculating the expenses done by NPC, DPR, Npdc and other paraster that constitute our oil companies. Also note that, the estimated 2.3 million barrels is not all exported a percentage is left for local consumption. If you look at monthly allocations to States and federal govt you should be able to deduce from there what we earn as a nation

Otigba1:
The calculation of revenue from oil is not as simplistic as that. Recall that the iInternational oil companies hold an average of 40% on the acreages as such you need to discount that from the calculation. In doing so however government revenue will be only Petroleum Profit Tax and Royalty. You first have to remove the cost of production which in some terrain is as high as $20/barrel. The balance 60% is for govt equity in the Joint Venture operations and you repeat the Math. Here you will see some profit oil beyond POT and Royalty. Lets be careful when we crank ip numbers. The marginal field operators will only remit PPT and Royalty to govt.

1. NNPC, from the amount the raise from the sell of crude, also pay tax to FIRS.

2. Revenues of FIRS also includes VAT. currently, VAT is shared in the ratio of 15% federal, 50% states and 35% local government. The entire 4.69 trillion are not remitted into the federation account

3. FIRS retain certain % of their revenue just like CBN, customs etc (how legal this is, I don't know but it is a fact)

The amount, 9.76 trillion cannot be true. This is in addition to external reserve saving, Excess crude account and SWF.

Nigeria has not earned Excess crude revenue since August last year or probably since this year to be safe, why is it necessary for her to include it?
SWF?? I just hope you know what that means
only your first point is valid.

Obiagelli:
Since when did FIRS start collecting crude oil revenue?

Btw using words like breaking it down to my level does not make you any smart. Go and read the FIRS link.

kaboninc:
That analysis got all the worms in my body to an excited state!

I felt a strong and painful shock.

Is that how 'informed'/'knowledgeable' these folks are?

Damn!!!!!

kaboninc:
I never had any intention of commenting on nairaland tonight but your comment above made me puke! Damn! I felt some goose pimples and had to correct you.

The price of a barrel of crude is below 60USD, especially the Nigerian flavour. I thought you were complaining about the 'sudden' increase in naira-dollar exchange rate? Saying this government has failed to manage the economy? Now you're using it to validate your analogy (even when it is flawed). You're funny. I wonder what your definition of management is!

Oby, I beg you, please do not post such nonsense/rubbish and term it as fact again especially here in nairaland. Gosh, you're not talking to kids neither are we in the bear palour.

You're insulting our collective intelligence here. Biko!

For God's sake, the FIRS collects all revenues for the Federal Government and that includes the income generated from sales of crude oil. So where is the additional N4.69 trillion from FIRS coming from? Pluto?

In your analogy, you were so ignorant that you forgot to add the COST, EXPENSES incurred in lifting one barrel, processing it and subsequently selling it.

STOP posting rubbish here and labelling it as a FACT! Then again, isn't it amazing that you will spend about 20% - 25% of your national budget (1.8 trillion of 4.6 trillion) on direct consumption when there are urgent needs that require urgent attention? Still, I wonder what your definition of efficient management is! Maybe that's how your party, the APC intends to prune the cost of governance. So pathetic! I hope you know this year's budget is a budget of deficit? (or you don't know too?) Maybe you guys will print more money to execute your pipe project!

I beg you, STOP so that some lazy kids won't come here to pick these fractured information you post here and use it as a basis to argue.

Lastly, God gave us 2 eyes each and a wonderful reasoning component called the brain. Please let's use it.

Cheers.

Cc: anonimi

taharqa:
Lolz

Obi, I like you so I would be kind. Plzzz, reread what you just wrote here and modify. I'm fact, rewrite everything.


CLUES when rewriting:
----Nigeria and the Oil companies only share the PROFIT from the Crude Oil sales after the Cost for the exploration, exploitation, storage, transportation, etc have been removed
---- This Share of the Oil Profit goes to the 3 tiers if Govt, and not just the FG
----- Most of the revenue that FIRS raise in a year come from taxes (royalties, production sharing fees, etc) from these same OIL COMPANIES, and so indirectly still come from the Profit of Crude Oil sales. It is therefore wrong to calculate it as though it is a stand-alone revenue source
--- Amongst others


The truth id that none of you chaps has even the slightest clue how to respond to that painstakingly well researched OP from barcanista. FULL STOP. We expect the main APC guys to tell Nigerians HOW they intend to fulfill the many promises they made during the campaigns. Apparently, they 'forgot' to do so before now

Greatings

The way you started, I almost thought you have a clue but when i saw the handle, I knew better to lose hope, funny thing is that most of you who want to discredit her dont even know where she got it wrong.
Agreed, she goofed but where??

EgusiSoup:
I chased Berem out of this forum and you might be my next target Obiagelli. So the oil produced from the creeks is what you want to use yet you are foolishly following people who say they are born to rule you.

I feel for the Igbo race!

Coldfeet:
Good question. For years I've wondered what happens to the other natural resources we have in this country! The gold and other precious stones up north who mines them and are the revenues generated from them ever made available to the rest of the nation ? Or is it a case of my own is mine and yours is ours mentality of the born to rule?

Omooba77:
You fail to factor in generation cost and royalties to your revenue projection..

Coldfeet:
Good question. For years I've wondered what happens to the other natural resources we have in this country! The gold and other precious stones up north who mines them and are the revenues generated from them ever made available to the rest of the nation ? Or is it a case of my own is mine and yours is ours mentality of the born to rule?

Obiagelli:
If politicians still less, we have no business borrowing. Are you saying oil companies gets more than 40%? I have reliable information but i can't find a link for it due to secrecy.

Billyonaire:
Obiagelli, so you will not share the funds to State Governments and Nothing for Local Governments ? Are you this uneducated to know about these issues. Chai, Buhari has infected you people with dogged daftiness. You wont even leave anything for Excess Crude Account, Nothing for External Reserves. ....Go school, you no gree. You will not even service any loans. Na wa o.

trillville:
Offshore comprises of continental shelves and deep sea oil fields. The ND cannot claim water bodies as part of ND land.

barcanista:
This is how things work....

Nigeria Generates revenue from Oil export...

Nigeria PAY Oil companies their own share for Operational Cost (mind you Nigeria is even owing these people).

Nigeria earning in 2014 from oil is $77b. ALl these money does not go to the government. Don't forget "Operational Cost". If Nigeria makes as much as $77b as its own share, we won't be crying for loan. Pls do your research and stop misleading people.

Na wa 4 you o
www.punchng.com/business/energy/nigeria-earned-77bn-from-oil-export-in-2014/

barcanista:
This is how things work....

Nigeria Generates revenue from Oil export...

Nigeria PAY Oil companies their own share for Operational Cost (mind you Nigeria is even owing these people).


Na wa 4 you o

doctokwus:
You failed to add 2 other potential sources of revenue:
(1) A more rigorous tax policy.D new govt may borrow a leaf from d way Lagos state government tanked its revenue from tax alone. Conservatively when more income generating streams come on line and many tax dodging individuals and companies are brought on stream nationwide,that could add another N500b- N1t.
(2) When loopholes from customs at d ports, and land borders are plugged another conservative N500-N1t cud be brought on line annually.
There is also d proposal to increase VAT. Even if its increased from 5% presently to 7.5%,annual revenue could see another N1t jump.
So conservatively you are looking at N2trillion additional income from untapped sources.
The social programs are doable.We should not also forgot that the 'a meal a day' school feeding policy would also create secondary employment opportunities:the food vendor contracted for each school or group of schools has to employ at least an assistant if not 2;he/she has to regularly go to the market to buy food ingredients,this increases d revenue of that seller,she has to transport her items to the school etc.These may look simplistic and menial in outlook but its these little streams of steady employment and income that gets economies moving because they create a chain.All these people also have to pay tax in one way or the other, no matter how little.
At the end of d day,d government may not even be spending as much as budgeted for d feeding policy and other social needs.
Its only those who don't know GMB that can doubt d workability of his policies or his sincerity of purpose.Even if at d end of d day,some of these social programs are not fully implemented, GMB himself would come out to say why and believe me,his forthrightness on whatever issue,would douse any doubters, except those so used to being mischievous and still bearing a deep seated hate for having lost out in stealing and corrupting this nation under previous governments, particularly that of d monster that will handover May 28 or 29.
GMB needs prayers, support and belief in d Nigerian project he is about to undertake, not hateful,spiteful,mischievous writeups from those whose hearts and souls are as bile filled as that of d devil himself.

Obiagelli:
Since when did FIRS start collecting crude oil revenue?

Btw using words like breaking it down to my level does not make you any smart. Go and read the FIRS link.

Truckpusher:
Very funny thread and yet people are commenting and churning out values from their asss.

I hope that they are aware that Nigeria has not been able to pay their own share of the operational cost to these companies which has forced companies like Shell to abandon some of their fields onshore though oil theft and insecurity played a role too.

Make una dey argue I dey come.

Flets:
OP like many Nigerians are shallow economists. So many holes can be easily picked from the quack calculations

1a. Where is the 13% derivation to the oil producing states? Or you assumed the FG takes the full 60% of crude sales revenue? .....
and even after 13% deduction, only 54% of the residual 47% (excluding 13% for producing states and 40% for the IOCs) of total crude sales revenue goes to the FG.

1b. FG budget is for FG expenditure alone. FG does not budget for states...... so where are the state allocations funded from since they are not captured in the FG budget?.... for your education, 46% of the residual revenue is meant for states and LGs.

2. Where do you think the capital cost of oil and gas projects come from for which the FG pays its 60% share? Or you think the oil flows on its own without spending money?

3. 2.65trillion of the 4.69trillion IGR you quoted on FIRS is already petroleum profit. Go back check the details and confirm you have double dipped same funds on both sources.

4. Your assumption that FG takes all the IGR generated by FIRS is wrong. Discount the amount accruable to the states first in your calculations.

5. What funds the external reserves or all revenues must be spent on recurrent expenditure?

Our revenue economics is not as simple as you lot think. Now that political campaigns are over, its time to educate Nigerians that our revenues are not limitless and some campaign points are not achievable albeit sustainable.

Assuming, Buhari miracously finds some fraction of the funds required for the welfare programs, how do you identify the poorest of the poor Nigerians deserving of the 5K?, What database is available to identify the welfare recipients? We even struggle to identify bonafide Nigerians much more low income earners.

Every effort to defend economic impossibilties reveals the shallowness of the incoming government.

anonimi:
I notice that ALL your revenue projection is based on Niger Delta crude oil. Nothing from groundnut oil, palm oil, coconut oil or other agricultural and industrial revenue.

Why are we only about SHARING the wealth derived from only one part of the country

Billyonaire:
That's not enticing. I make more than that in a month. I feel ashamed that a President has to earn that low. I cant take the insults and earn that low.

maclatunji:
It's about an individual trying to earn money to keep body and soul alive and make progress in life. Young man for example wants to get married start a family, they don't bother about the next person, it's about them.

Setaje:
I think u are d one letting your emotions get the better of you. What do u mean we are ridiculous. Learn how to communicate, also read and understand. Retirees do no make more than active staff except in rare cases where they have worked for a very long period of time. Someone that worked for 30 years as a retiree earns more than someone is who has worked for just 10years and is still working. With time his salary increases. U don't just come online and spew rubbish. U think there are no set down rules. No where does retiree earn more than active staff except in such cases I mentioned.

maclatunji:
For many beneficiaries of nepotism, it is a matter of survival. So my question is valid.

emeka2847:
Try Startimes. The only think absent is BPL. But laliga, UEFA, documentaries, music, cartoons, news are abundant.

All at 600, 1k, 2k, or 3k per month.

I watched CL last night and captured it to show guys. I am angry with DSTV cos,

1. Every year they increase charges
2. They have refused to do pay per watch like in other countries
3. They're violent court injunction not not increase price.

But it's not their fault. When our senior citizens keep violating court orders.

Sad!

#Boycott DSTV

Segadem:
don't blame south Africa for its bussiness strategy for the failure of our government to do the right thing,DSTV first came to Nigeria I think in '93 or 1994 but was rejected by our dictatorship Gen. Sanni Abacha .