₦airaland Forum

Nigeria’s economy is centered on petrol dollar and that is what we all rely on for survival as it
represents 70 per cent of our revenue. While I was ruminating on our income generation in Nigeria, which centers around oil production, I wondered; how much can the average man possibly earn from Oil.
Going by OPEC’s production allowance for Nigeria, we can only produce 2.1 million barrels of oil per day, it means we can produce a maximum of 766.5 million barrels annually. With an estimated population of about 170 million, if we divide the barrels of oil per head which we are all entitled to, it means we are all entitled to approximately 5 barrels per head per year. The cost of a barrel of oil as of today is 50 dollars, meaning that each Nigerian is entitled to 250 dollars per year.
The cost of the dollar today in exchange for the Naira is between N366 and N370 per dollar but lets us assume that a dollar is N400 for ease of calculation. Multiplying 250 Dollars by N400, this amounts to N100,000and that is what each Nigerian is entitled to per head per year from the proceeds of Crude Oil Sales assuming this very simplistic analysis. Now, Let’s divide this into twelve months, it means on a monthly basis, we are entitled to N8,333.33. How much is #8,333,33 to an average Nigerian in a month; does it take care of his basic needs? Lest we forget, our current minimum wage is N19,000, way above our N8,333 earning as a Nation.
As bad as the picture painted above is, it is sad to admit that this is the reality of the everyday Nigerian. This is why as a country, we languish in poverty and wretchedness. The proceeds from oil seem enormous to us because only a few, I would say at most , about a million Nigerians of our the entire population benefit immensely from the proceeds, which makes them extremely richer than the average Nigerian.
By the statistics I have given, if the proceeds of crude oil that every Nigerian was entitled to was actually given to him, even at the cost of N8,000 in a month, maybe the situation would not be as dire as it is now, but because about 99 per cent don’t have access to their entitlement, that is why we think we are rich but all this while, this has been the basis of our wretchedness and poverty as a nation.
So what’s the way out, Oil income is definitely not enough to realize the prosperous the Nigeria of our dream, sharing the “National Cake” is not the way out. We need to create New Wealth. We need to move from rent income and earn our way to prosperity. For Nigeria to succeed, We will need to Produce. Produce our Food , our Clothes, our House and other Needs. We must move from a Rent Culture to a Production Culture.

source:http://www.pressnewsng.com.ng/2017/09/reliance-on-oil-is-basis-of-our.html

i guess that was the reason why the Governor has been paying half salaries to his workers since 2014.

cc lalasticlala cc mynd44

activistjohnny:
i guess that was the reason why the Governor has been paying half salaries to his workers since 2014.

Coz the state isn't self reliant.

MasterKim:
Coz the state isn't self reliant.

I don't believe that. It is the Nigeria system of governance are the ones drawing us back. There's no tranquility and accountability in the system. If restructuring is been declared this year od next year I strongly believe all the lazy governors will sit tight and work hard to increase their IGR.

activistjohnny:
Nigeria’s economy is centered on petrol dollar and that is what we all rely on for survival as it
represents 70 per cent of our revenue. While I was ruminating on our income generation in Nigeria, which centers around oil production, I wondered; how much can the average man possibly earn from Oil.
Going by OPEC’s production allowance for Nigeria, we can only produce 2.1 million barrels of oil per day, it means we can produce a maximum of 766.5 million barrels annually. With an estimated population of about 170 million, if we divide the barrels of oil per head which we are all entitled to, it means we are all entitled to approximately 5 barrels per head per year. The cost of a barrel of oil as of today is 50 dollars, meaning that each Nigerian is entitled to 250 dollars per year.
The cost of the dollar today in exchange for the Naira is between N366 and N370 per dollar but lets us assume that a dollar is N400 for ease of calculation. Multiplying 250 Dollars by N400, this amounts to N100,000and that is what each Nigerian is entitled to per head per year from the proceeds of Crude Oil Sales assuming this very simplistic analysis. Now, Let’s divide this into twelve months, it means on a monthly basis, we are entitled to N8,333.33. How much is #8,333,33 to an average Nigerian in a month; does it take care of his basic needs? Lest we forget, our current minimum wage is N19,000, way above our N8,333 earning as a Nation.
As bad as the picture painted above is, it is sad to admit that this is the reality of the everyday Nigerian. This is why as a country, we languish in poverty and wretchedness. The proceeds from oil seem enormous to us because only a few, I would say at most , about a million Nigerians of our the entire population benefit immensely from the proceeds, which makes them extremely richer than the average Nigerian.
By the statistics I have given, if the proceeds of crude oil that every Nigerian was entitled to was actually given to him, even at the cost of N8,000 in a month, maybe the situation would not be as dire as it is now, but because about 99 per cent don’t have access to their entitlement, that is why we think we are rich but all this while, this has been the basis of our wretchedness and poverty as a nation.
So what’s the way out, Oil income is definitely not enough to realize the prosperous the Nigeria of our dream, sharing the “National Cake” is not the way out. We need to create New Wealth. We need to move from rent income and earn our way to prosperity. For Nigeria to succeed, We will need to Produce. Produce our Food , our Clothes, our House and other Needs. We must move from a Rent Culture to a Production Culture.

source:http://www.pressnewsng.com.ng/2017/09/reliance-on-oil-is-basis-of-our.html

Interpretation -
Move from a center-reliant beggar to a regional market owner. Another fire at restructuring.

I respectfully disagree with you on this sir.

The basis of our wretchedness is the preponderance of wicked thieves and fools at the corridors of power sir.

Even if we don't rely mainly on oil and diversify so much so we have as many major forex earners as there are states, but still have this crop of leader, we would still remain wretched!

gini mezia?

MasterKim:
Coz the state isn't self reliant.

Good the state should merge with neighbouring state then like ogun/ekiti /etc.

eposho:
Good the state should merge with neighbouring state then like ogun/ekiti /etc.

Merge Osun State with Ekiti state? You need head examined for obvious reason.
Merge Osun State with Ogun State? You need your head examined again for another obvious reason.

omenka:
The basis of our wretchedness is the preponderance of wicked thieves and fools at the corridors of power sir.

I respectfully disagree with you on this.

Even if we don't rely mainly on oil and diversify so much so we have as many major forex earners as there are states, but still have this crop of leader, we would still remain wretched!

Aregbe is just mirror image of Okonjo Iweala, both went on borrowing spree using temporary and non reliable surge in crude oil revenue. Both of them like to blow hot and cold at the same time.
Ordinary Agric sector, he couldn't revive.

omenka:
I respectfully disagree with you on this sir.

The basis of our wretchedness is the preponderance of wicked thieves and fools at the corridors of power sir.

Even if we don't rely mainly on oil and diversify so much so we have as many major forex earners as there are states, but still have this crop of leader, we would still remain wretched!

how do you disagree with him here. Kindly expansiate more on it. The governor has a points. If not dependence on oil am asking why is that your current still owing workers and pensioners in benue state. Why can't you ask him that questions hmmmmmm.

GetMeRight:
Aregbe is just mirror image of Okonjo Iweala, both went on borrowing spree using temporary and non reliable surge in crude oil revenue. Both of them like to blow hot and cold at the same time.
Ordinary Agric sector, he couldn't revive.

exactly on points here. You really nailed it on the head. Instead of these state governors to invest on their mineral resources, they are busy going to Abuja to share Niger delta oil money.

Is that why you have taken unserviceable loans of over 145 billion naira with nothing to show for it ?

GetMeRight:
Merge Osun State with Ekiti state? You need head examined for obvious reason.
Merge Osun State with Ogun State? You need your head examined again for another obvious reason.

abeg enlighten him more. I don't believe the state merging themselves. What's need for their government is to diversify to mining sector, agriculture sector, telecommunication sector, and industry sector. With these investment, they will be able to generate huge IGR to their various states.not going to Abuja to share the national cake.

BabaRamota1980:
Interpretation -
Move from a center-reliant beggar to a regional market owner. Another fire at restructuring.

I love your reply here. Before we restructure Nigeria, we should restructure our mind also. Enough of consuming states. What we should be talking about is production states where each states will be able to generate enough IGR to the government purse. Enough of sharing Niger delta money.

With this knowledge, how has he created new wealth for his state?

MasterKim:
Coz the state isn't self reliant.

imagine this comment. Well the state is self reliant if I can project it that way. Its just that the way and manner our governors spend the FG allocation is bad. They will spend it on irrelevant things. We need more investments on mining sector, steel sector, textile sector, tourism sector and telecommunication sector.

omenka:
I respectfully disagree with you on this sir.

The basis of our wretchedness is the preponderance of wicked thieves and fools at the corridors of power sir.

Even if we don't rely mainly on oil and diversify so much so we have as many major forex earners as there are states, but still have this crop of leader, we would still remain wretched!

by ur notion, we need to import new leaders from jebba or astana to come lead us since the entire citizens r all pdp stock.
The problm with ur sense of reasoning is that it can cause our fragile economy to collapse totally, please do us a favour next time u want to share to reasonings n opinion in a public forum, consult lalasticlala first.

yaki84:
by ur notion, we need to import new leaders from jebba or astana to come lead us since the entire citizens r all pdp stock.
The problm with ur sense of reasoning is that it can cause our fragile economy to collapse totally, please do us a favour next time u want to share to reasonings n opinion in a public forum, consult lalasticlala first.

nice reply from you here. You really knock omenka well this time. Omenka doesn't stay in one lane but always jump from one place thread to another. May almighty God forgive him.

Johnnyessence:
exactly on points here. You really nailed it on the head. Instead of these state governors to invest on their mineral resources, they are busy going to Abuja to share Niger delta oil money.

r u aware that land is own by fed govt, which means anything or everything beneath that land be it mineral resources or rubbish belongs first to the centre.
The main reason u see most states refusing to exploit their mineral resources. Or we can say some r exploiting it but since the fed govt eye is fixated on oil, n some regions r the real owners of the country so some of the laws shouldnt fall heavy on them.
No state can develop its mineral field cause its in the exclusive list of the fed govt!

yaki84:
r u aware that land is own by fed govt, which means anything or everything beneath that land be it mineral resources or rubbish belongs first to the centre.
The main reason u see most states refusing to exploit their mineral resources. Or we can say some r exploiting it but since the fed govt eye is fixated on oil, n some regions r the real owners of the country so some of the laws shouldnt fall heavy on them.
No state can develop its mineral field cause its in the exclusive list of the fed govt!

imagine. You have already make your points. You impressed me with your points here. The problem here's that the FG controls almost all the resources in all the 36 states in Nigeria. That's the reason while the SW states are clamouring for restructuring. With restructuring I strongly believe all the state governors will be controlling the mineral resources in their various states. These resources are their common wealth. Its unfortunate the same FG isn't allocate much funds to all the states that's providing all the revenue. Restructuring or division is the way forward.

You are right and wrong.

true

reliance on oil is not the main problem. the problem is the looting of the oil generated revenue. Mr aregbe how does our reliance on Oil stop you from paying salary.. Please don't piss me off. OK

Johnnyessence:
imagine. You have already make your points. You impressed me with your points here. The problem here's that the FG controls almost all the resources in all the 36 states in Nigeria. That's the reason while the SW states are clamouring for restructuring. With restructuring I strongly believe all the state governors will be controlling the mineral resources in their various states. These resources are their common wealth. Its unfortunate the same FG isn't allocate much funds to all the states that's providing all the revenue. Restructuring or division is the way forward.

that's why i wish niger delta govrs will act fast now cos in 15yrs time oil will be worthless to the west n agrobusiness will lead the way n they shud strive against all odds to make agriculture a real venture.
In this restructuring the north stands to benefit more in the long term, but their problem is heading ministries, agencies, giving jobs to their people, abusing that fed character laws on employment.
I wish they see from afar n not just 2019

Christonjnr:
gini mezia?

hmmmm meaning.

Reckless governor of a man. Could he have secured huge loans with Osun megre IGR ?

still doesnt stop our governors, ministers, senators from earning millions on a monthly basis...It is only a black man that can turn something as good as the sweet crude God gave us into poverty and wretchedness. There is enough for investments in infrastructure, education, healthcare, agriculture but the big problem here is our leaders are not productive, they are not good thinkers. We have the worse set of Nigerians masquerading themselves as men of integrity. They have completely failed in utilizing the human and natural resources God has given us for our growth and development.

Johnnyessence:
imagine this comment. Well the state is self reliant if I can project it that way. Its just that the way and manner our governors spend the FG allocation is bad. They will spend it on irrelevant things. We need more investments on mining sector, steel sector, textile sector, tourism sector and telecommunication sector.

Can Osun's IGR cover its recurrent expenditure ? Direct answers please.

fun1:
reliance on oil is not the main problem. the problem is the looting of the oil generated revenue. Mr aregbe how does our reliance on Oil stop you from paying salary.. Please don't piss me off. OK

exactly on point. The looting of the free oil money is the problem. The travel to abuja to share it. And at the end they will be complaining that there's no money to pay the workers. It is unfortunate. You will be seeing one imams and one sultan of sokoto will be using a jeep worth 50 million naira. Why the village where all this crude oil were explored are in dilapilated state. It is unfortunate we are withnessing this issues.

Desyner:
Reckless governor of a man. Could he have secured huge loans with Osun megre IGR ?

hmmm even the huge loans he acquired from world bank and sukuk is really really affecting his government. 6 months down the drain, lautech students are still at home. No hope for them to resume soon. So so pathetic. He has been paying workers half salaries since 2014. So so pathetic situation.