First let's get this point clear

Borrowing is not bad if it is invested in projects that will generate more direct revenues eg Agriculture Mining Industrialization etc with intent to Privatized and True Federalized at state levels while ensuring that no region is neglected once it comes to project siting

But in the case of Nigeria where people are so corrupt, it will be foolish to invest borrowed money without first finding out if such people are in the system

Buhari should not borrow any money for the year 2016. He should rather monitor how his subordinates manage our scarce revenue to help him identify the Judas in his ranks and files.

By 2017, he can now borrow once he is sure that his goodwill won't be sabotaged.


No matter how honest a leader is, they will be Judas within his ranks and files which he must identify and keep in check if he desires to make a difference



Jesus , David and Former President Jonathan had good intentions but had followers who kept making a mess of their good intentions.




Happy Christmas








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A Deficit Budget?!

..

ok

Merry Christmas

We need to establish peace first in the North before embarking on borrowing exercise to invest in Agro-industry in the region. No reasonable output can be achieved when a region is battling with insecurity.

Let he that has ears......

what do you expect from a dulllard












.merry Christmas everyone

TonyeBarcanista:
We need to establish peace first in the North before embarking on borrowing exercise to invest in Agro-industry in the region. No reasonable output can be achieved when a region is battling with insecurity.

He has to study his ministers so as not to end up like Jonathan


I don't trust all his ministers since they have being accused with facts of misappropriation of funds at state level

Except he too is a hypocritical thief, will he proceed without first studying those around him.


Finally he must complement it with True Federalism

Nigeria is a failed State... Take it or leave it, there nothing one can do about it.
We have too many interests that are irreconcilable.

EternalTruths:



He has to study his ministers so as not to end up like Jonathan


I don't trust all his ministers since they have being accused with facts of misappropriation of funds at state level

Except he too is a hypocritical thief, will he proceed without first studying those around him.


Finally he must complement it with True Federalism

80% of Buhari ministers are men (and women) of questionable antecedents. This is a big minus to any government. Can't you see that over three months since appointment(of the ministers) that Nigeria is still floating without making headway? The uncertainties, confusion and even a state of hopelessness is creeping in. The government is only held by the integrity of Buhari as a pe onand not that of his government. There is still time for them but they've been less impressive so far.

As for restructuring, thats

U want the economy to collapse totally? This economy needs stimulation urgently. A good leader can manage his surbodinates

grafikii:
U want the economy to collapse totally? This economy needs stimulation urgently. A good leader can manage his surbodinates

If Buhari wants to stimulate the economy, he shouldn't have tampered with salaries, on going projects and he should have instituted Fiscal Federalism based on 25% derivation to spur states to exploit their abandoned potentials.

Planning within our means is the best bet for now until he is sure of those below him.

Nigeria should not borrow? Are you joking or you are serious? Nigeria is expecting N820 billion naira from oil exports and a total revenue projection of N3.86 trillion. putting this in perspective, it means that if the government decides to share our expected earnings between all of us (170 million), each person would get N22,700 for the year. That is a paltry $110 per year.

So how will the government give you light, roads, hospitals, schools, etc. We have not even mentioned salaries and allowances of our overbloated civil service, military and our ever greedy politicians. Even at the total budget of N6.08 trillion with borrowings, you are only entitled to a share of N35,700.

so you see the government is under borrowing.

EternalTruths:


If Buhari wants to stimulate the economy, he shouldn't have tampered with salaries, on going projects and he should have instituted Fiscal Federalism based on 25% derivation to spur states to exploit their abandoned potentials.

Planning within our means is the best bet for now until he is sure of those below him.

Is fiscal fedralism the job of buhari or the national assembly.

Tampered with salaries how? do you think the federal civil service pay is the stimulant the economy needs

Please remind of the on going projects that have be cancelled, where were u when gej presented a bidget of 11billion for infranstructure for 2015

wirinet:
Nigeria should not borrow? Are you joking or you are serious? Nigeria is expecting N820 billion naira from oil exports and a total revenue projection of N3.86 trillion. putting this in perspective, it means that if the government decides to share our expected earnings between all of us (170 million), each person would get N22,700 for the year. That is a paltry $110 per year.

So how will the government give you light, roads, hospitals, schools, etc. We have not even mentioned salaries and allowances of our overbloated civil service, military and our ever greedy politicians. Even at the total budget of N6.08 trillion with borrowings, you are only entitled to a share of N35,700.

so you see the government is under borrowing.

Multiply 2.2 million barrels by 365days by $38 by #200

You will get #6,102,800,000,000 trillionnaira

Multiply 2.2 Million barrels by 365days by $20 by #200

You will get #3,212,000,000,000 trillion naira




Tell me how come #860 billion naira


Buhari and APC can't scam me like you illiterates.

Buhari shouldn't borrow money? The case of corruption shouldn't be a basis of not sourcing for funds through loans. Some people are yet to fully understand the structure of budget and how it works in the system. Lolzz, this is funny and dumb!!

EternalTruths:


Multiply 2.2 million barrels by 365days by $38 by #200

You will get #6,102,800,000,000 trillionnaira

Multiply 2.2 Million barrels by 365days by $20 by #200

You will get #3,212,000,000,000 trillion naira




Tell me how come #860 billion naira


Buhari and APC can't scam me like you illiterates.

1. The Federal government budget is the Budget of the federal government alone. Not
the Budget of the country.
Thus from the Nigeria sharing formula, the Federal government takes about 54% of the total oil revenue accruing to the country
(Nigeria Federation).


2. Most of the oil production in Nigeria are JV and PSC. Using the JV template, Nigeria (the federation not Federal govt) only owns 60% of the oil produced and the Oil companies owns the remaining 40% of the oil produced per day . thus the 2.2 million per day, only is 0.6*2.2million=1.32million belong to Nigeria (The federation).
Federal govt share (Potential) =
0.54*1.32million=712,800 per day.


3. The actual average production per day is about 80% of the Potential production this is because of 20% shutdown for maintenance, unplanned shut downs, pipeline vandalisation etc.
Thus the Federal govt actual average production per day = 0.8*712,800=570,240.


4. Today the average cost of production per barrel in Nigeria is about $18 per barrel. Actually some onshore field cost are as low
as $10 per barrel while some deep offshore and shallow offshore cost are as high as $25 dollar per barrel. Today more than 60% of
Nigeria crude are from Offshore. thus using an average cost of $18 per barrel is realistic.
Thus out of the $38 dollar per barrel price of oil, the net revenue to the govt is about $20 per barrel. thus the expected revenue to federal government from direct sales of Crude oil in 2016 is:
= $20 *199naira/1$ *570240*366*billion/1000000000= 830billion naira
From my estimation the Federal government expected revenue from direct oil sales is about 830billion naira which is very close to 820 billion naira estimated from federal
government.
However, this is not all the federal govt get from having oil in this country. The oil companies pay company tax in hunderds of
billion of naira. But the govt choose to call it company tax
because other companies that are not oil companies pay tax too. However the company Tax of oil companies is about 85%
of their profit. Thus of the about 1.5 trillion naira expected revenue from Company Income Tax (CIT), Value Added Tax (VAT),
Customs and Excise duties, and Federation Account levies, about 50% of it are coming from oil companies.
Also another reason the govt is not getting much more currently from Direct oil sales is because of "Carry agreement" Most of the recent oil development and
investment in the last ten years on JV contract are mostly done on "Carry agreement".
Carry agreement is the contract between the govt through NNPC and Oil companies whereby the Oil companies provide all the
fund to invest in new field development (Instead of NNPC providing 60% of the cost),
and then the companies recover their money by collecting part of the federal govt oil share over time. That means some of the
oil that would have got to the Federal govt today have been collected by the federal govt ahead of time in the past. So they get less today.

https://www.nairaland.com/2820830/why-oil-revenue-2016-budget#41298195
I hope this information will cure your ignorance on this. Nobody is trying to dupe you. And you suppose to be wondering why you are the only one thinking about this calculation, well the answer is simple. It's because you are the only one chilling on the throne of ignorance!!
Apart from that, I can boldy assure you that with President Buhari - your money is safe!!

EternalTruths:


Multiply 2.2 million barrels by 365days by $38 by #200

You will get #6,102,800,000,000 trillionnaira

Multiply 2.2 Million barrels by 365days by $20 by #200

You will get #3,212,000,000,000 trillion naira




Tell me how come #860 billion naira


Buhari and APC can't scam me like you illiterates.

Are you guys (PDP) feigning ignorance or you are truly this ignorant?

So common sense tells you that the federal government would pocket the whole 2.2 million barrels by 365days by $38 by #200. I refuse to believe that you are not aware of how the FG and Nigeria as a whole earn revenue from oil, but just in case i will educate you.

The oil sold in the international market is not pocketed by the Federal government of Nigeria but shared between the oil exploiting companies and the federation using an agreed sharing formula (60:40) after production expenses had been deducted. Then the Federation's state which is 60% is then shared between the Federal Government, The 36 states and the 774 local government in the ration 54:24:22 (approximately). So this budget is the expected Federal Government expected share of our oil revenue, the states and local governments will also present their own budgets based on their own expedited share of our total earnings.

I hope you are wiser now.

EternalTruths:


Multiply 2.2 million barrels by 365days by $38 by #200

You will get #6,102,800,000,000 trillionnaira

Multiply 2.2 Million barrels by 365days by $20 by #200

You will get #3,212,000,000,000 trillion naira




Tell me how come #860 billion naira


Buhari and APC can't scam me like you illiterates.

Brother just to kindly make some corrections in your analysis, multiply by 60% which is NNPCs share typical of most JV agreements, then a further 52% share which goes to the fg based on Nigerias revenue sharing formulae, + 85% tax on profits of the IOCs and any other royalties or rent contributors not covered by this overtly simplistic analysis.

wirinet:


Are you guys (PDP) feigning ignorance or you are truly this ignorant?

So common sense tells you that the federal government would pocket the whole 2.2 million barrels by 365days by $38 by #200. I refuse to believe that you are not aware of how the FG and Nigeria as a whole earn revenue from oil, but just in case i will educate you.

The oil sold in the international market is not pocketed by the Federal government of Nigeria but shared between the oil exploiting companies and the federation using an agreed sharing formula (60:40) after production expenses had been deducted. Then the Federation's state which is 60% is then shared between the Federal Government, The 36 states and the 774 local government in the ration 54:24:22 (approximately). So this budget is the expected Federal Government expected share of our oil revenue, the states and local governments will also present their own budgets based on their own expedited share of our total earnings.

I hope you are wiser now.

I showed my little cousin in SS 2 about what the guy posted and he bursted into laughter. The guy is a living definition of ignorance!! Allow him to enjoy it!!

Jokay07:

1. The Federal government budget is the Budget of the federal government alone. Not
the Budget of the country.
Thus from the Nigeria sharing formula, the Federal government takes about 54% of the total oil revenue accruing to the country
(Nigeria Federation).


2. Most of the oil production in Nigeria are JV and PSC. Using the JV template, Nigeria (the federation not Federal govt) only owns 60% of the oil produced and the Oil companies owns the remaining 40% of the oil produced per day . thus the 2.2 million per day, only is 0.6*2.2million=1.32million belong to Nigeria (The federation).
Federal govt share (Potential) =
0.54*1.32million=712,800 per day.


3. The actual average production per day is about 80% of the Potential production this is because of 20% shutdown for maintenance, unplanned shut downs, pipeline vandalisation etc.
Thus the Federal govt actual average production per day = 0.8*712,800=570,240.


4. Today the average cost of production per barrel in Nigeria is about $18 per barrel. Actually some onshore field cost are as low
as $10 per barrel while some deep offshore and shallow offshore cost are as high as $25 dollar per barrel. Today more than 60% of
Nigeria crude are from Offshore. thus using an average cost of $18 per barrel is realistic.
Thus out of the $38 dollar per barrel price of oil, the net revenue to the govt is about $20 per barrel. thus the expected revenue to federal government from direct sales of Crude oil in 2016 is:
= $20 *199naira/1$ *570240*366*billion/1000000000= 830billion naira
From my estimation the Federal government expected revenue from direct oil sales is about 830billion naira which is very close to 820 billion naira estimated from federal
government.
However, this is not all the federal govt get from having oil in this country. The oil companies pay company tax in hunderds of
billion of naira. But the govt choose to call it company tax
because other companies that are not oil companies pay tax too. However the company Tax of oil companies is about 85%
of their profit. Thus of the about 1.5 trillion naira expected revenue from Company Income Tax (CIT), Value Added Tax (VAT),
Customs and Excise duties, and Federation Account levies, about 50% of it are coming from oil companies.
Also another reason the govt is not getting much more currently from Direct oil sales is because of "Carry agreement" Most of the recent oil development and
investment in the last ten years on JV contract are mostly done on "Carry agreement".
Carry agreement is the contract between the govt through NNPC and Oil companies whereby the Oil companies provide all the
fund to invest in new field development (Instead of NNPC providing 60% of the cost),
and then the companies recover their money by collecting part of the federal govt oil share over time. That means some of the
oil that would have got to the Federal govt today have been collected by the federal govt ahead of time in the past. So they get less today.

https://www.nairaland.com/2820830/why-oil-revenue-2016-budget#41298195
I hope this information will cure your ignorance on this. Nobody is trying to dupe you. And you suppose to be wondering why you are the only one thinking about this calculation, well the answer is simple. It's because you are the only one chilling on the throne of ignorance!!
Apart from that, I can boldy assure you that with President Buhari - your money is safe!!

You see why I regard you guys as illiterates


Buhari arrived at 830000 billion naira based on $38 dollar which you intentionally refused to calculate.


Now re do your calculation of what I highlighted blue using $38

You guys think we are illiterates like APC people

EternalTruths:



You see why I regard you guys as illiterates


Buhari arrived at 830000 billion naira based on $38 dollar which you intentionally refused to calculate.


Now re do your calculation of what I highlighted blue using $38

You guys think we are illiterates like APC people

Guy stop embarrassing yourself. The $20 the guy used is after the cost of exploration has been deducted.

Nigeria gets 60% of the total crude sold after the oil companies have deducted the cost of getting the crude.

EternalTruths:



You see why I regard you guys as illiterates


Buhari arrived at 830000 billion naira based on $38 dollar which you intentionally refused to calculate.


Now re do your calculation of what I highlighted blue using $38

You guys think we are illiterates like APC people

Shut up and cover your head in shame. You reason like a primary school student. People are trying to educate you but are are hardened in your ignorance. The oil price was predicated on $38 per barrel and not your fabled $20. So you are the only wise person in Nigeria who sees mistakes in calculations of our projected oil revenue.

NavierStokes:

Brother just to kindly make some corrections in your analysis, multiply by 60% which is NNPCs share typical of most JV agreements, then a further 52% share which goes to the fg based on Nigerias revenue sharing formulae, + 85% tax on profits of the IOCs and any other royalties or rent contributors not covered by this overtly simplistic analysis.

Jokay07:
I showed my little cousin in SS 2 about what the guy posted and he bursted into laughter. The guy is a living definition of ignorance!! Allow him to enjoy it!!

I know about the 60% and 54% rule

Tell him to calculate again using Buhari's $38 and not the $20 I suggested.


He is trying to be smart.


$38 * #199* 365*570240= 1,573,936,531,200 trillion naira

Why did Buhari lied by saying 830 Billion naira.


So who is fooling who.?


Don't tell me cost of production is $20 without fact

AZeD1:

Guy stop embarrassing yourself. The $20 the guy used is after the cost of exploration has been deducted.

Nigeria gets 60% of the total crude sold after the oil companies have deducted the cost of getting the crude.

wirinet:

Shut up and cover your head in shame. You reason like a primary school student. People are trying to educate you but are are hardened in your ignorance. The oil price was predicated on $38 per barrel and not your fabled $20. So you are the only wise person in Nigeria who sees mistakes in calculations of our projected oil revenue.

And you believe him

That the cost of production is $20

Please tell me where he got his fact.

What is your business with what happens to Nigeria?

U are an IPOB youth, concentrate on dilector and let nigerians sort out their own problems

EternalTruths:


And you believe him

That the cost of production is $20

Please tell me where he got his fact.

Ebukaobi:
What is your business with what happens to Nigeria?

U are an IPOB youth, concentrate on dilector and let nigerians sort out their own problems

When you see a former GEJ till 2019 miscreant but now an IPOB youth giving an advice on how to run Nigeria, something is amiss
Just look at the shallowness behind his thoughts for the government not to borrow.

APC supporters

Show us fact that the cost of crude oil production is $20.

I am still waiting oooo

EternalTruths:



You see why I regard you guys as illiterates


Buhari arrived at 830000 billion naira based on $38 dollar which you intentionally refused to calculate.


Now re do your calculation of what I highlighted blue using $38

You guys think we are illiterates like APC people

Now get as ass sitted on that bench, get a book and jot this analysis down.

4. Today the average cost of production per barrel in Nigeria is about[b] $18 per barrel[/b]. Actually some onshore field cost
are as low as $10 per barrel while some deep offshore and shallow offshore cost are as high as $25 dollar per barrel. Today more than 60% of Nigeria crude are from Offshore thus using an average cost of $18 per barrel
is realistic. Thus out of the $38 dollar per barrel price of oil, the net revenue to the govt is about $20 per barrel and the expected revenue to federal government from direct sales of Crude oil in 2016 is: = $20 x199naira/1$ x570240x366xbillion/1000000000= 830billion naira
From my estimation the Federal
government expected revenue from direct oil sales is about 830billion naira which is very close to 820 billion naira
estimated from federal
government.


If you still don't understand how we arrive at $20 per barrel, then you need to go back to school and resit for Waec!!

EternalTruths:


And you believe him

That the cost of production is $20

Please tell me where he got his fact.

He didn't say it $20, read his post very well with an open mind.

Jokay07:
Now get as ass sitted on that bench, get a book and jot this analysis down.

4. Today the average cost of production per barrel in Nigeria is about[b] $18 per barrel[/b]. Actually some onshore field cost
are as low as $10 per barrel while some deep offshore and shallow offshore cost are as high as $25 dollar per barrel. Today more than 60% of Nigeria crude are from Offshore thus using an average cost of $18 per barrel
is realistic. Thus out of the $38 dollar per barrel price of oil, the net revenue to the govt is about $20 per barrel and the expected revenue to federal government from direct sales of Crude oil in 2016 is: = $20 x199naira/1$ x570240x366xbillion/1000000000= 830billion naira
From my estimation the Federal
government expected revenue from direct oil sales is about 830billion naira which is very close to 820 billion naira
estimated from federal
government.


If you still don't understand how we arrive at $20 per barrel, then you need to go back to school and resit for Waec!!

You are still not making sense

Provide evidence of how much it cost to produce a barrel of oil.

You can't come online and quote figures without backing the figure with fact


If you say it cost $18 to get a barrel of oil, provide evidence of it.


I asked for evidence .




If you provide evidence of your figure from a reliable source, I will accept you are right.


Because the true figure could be $5 and not $18 dollar you quoted.