As global oil prices continue to fall, proceeds from the sale of Nigeria’s crude oil and gas have dropped by N30.01bn ($150.4m) in just two month, figures from the latest financial and operations report of the Nigerian National Petroleum Corporation have shown.
The drop of N30.01 drop was recorded between October and December 2015, the report stated.
According to the NNPC, the country raked in $420.3m (N84.1bn) as proceeds from the sale of oil and gas in October last year. But in December, the earnings dropped to $269.9m (N53.98bn).
The report stated that the country’s total revenue from the oil and gas in 2015 was $4.6bn (N920bn), which was a far cry from $30bn (N6tn) generated from the same source in 2012 as published by the Nigerian Extractive Industries Transparency Initiatives.
In the latest report, the national oil firm stated that the highest monthly dollar income generated from the oil and gas sales in 2015 was $475.24m and this was recorded in March.
It gave that the least monthly revenue as $233.26m, which was recorded in August.
Similarly, the report showed that the NNPC earned N661.34bn from the sale of white products, petrol and kerosene in the year under review.
According to the report, a total of N80.34bn was collected from the sale of white products by the Pipelines Product and Marketing Company in December 2015 compared with N66.96bn, which was realised in November 2015.
“The total revenue generated from the sale of white products for the period of January to December 2015 stands at N661.34bn where Premium Motor Spirit (popularly referred to as petrol) contributed about 88.02 per cent of the revenue collected with a total of N582.14bn,” it said.
The NNPC stated that a total of 1,076.35 million litres of white products were distributed and sold by the PPMC in December 2015 compared with 908.02 million litres in November 2015.
This, it said, was comprised of 983.19 million litres of the PMS; 81.02 million litres of kerosene and 12.14 million litres of diesel.
“The total sale of white products for the period of January to December 2015 stands at 9.07 billion litres. The PMS was 7.49 billion litres and accounts for 82.61 per cent,” the report stated.
Economists as well as operators in the oil and gas sector have called on the government to diversify the country’s economy, as revenue generation from oil and gas has continued to fall, particularly since 2015.
They noted that the fall in global oil prices was not good for the Nigerian economy and the cost of the commodity might continue to plunge.
According to them, the crude oil market is already saturated as more international firms now produce the product.
A former President, Association of National Accountants of Nigeria, Dr. Samuel Nzekwe, told our correspondent that crude oil prices had been falling since last year, adding that the development had adversely affected the Nigerian economy.
He said, “The price of crude oil in the international market has been falling and this has affected Nigeria’s revenue badly. Considering the manner in which crude price is falling, the best thing for us to do as a country is to intensify efforts in diversifying our economy, because it may continue to fall even by next year.”
The Assistant National Secretary, Nigerian Electricity Consumer Advocacy Network, Mr. Obong Eko, also said, in view of the plunge in crude oil prices, the best alternative for Nigeria at the moment was to diversify the economy.
“I think one of the best alternatives for us as country at the moment is to diversify the economy,” he said.
Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS
Economic uncertainty plunged Nigeria’s real estate sector by 8.06 percent in the third quarter of the year, according to the National Bureau of Statistics (NBS).
Nigeria’s statistics office said “In nominal terms, real estate services recorded a growth rate of –8.06 per cent in the third quarter of 2020, indicating a decline of –11.78 per cent points compared to the growth rate at the same period in 2019, and by 9.12 per cent points when compared to the preceding quarter.
“Quarter-on-quarter, the sector growth rate was 18.92 per cent.
“Real GDP growth recorded in the sector in Q3 2020 stood at -13.40 per cent, lower than the growth recorded in third quarter of 2019 by –11.09 per cent points, but higher relative to Q2 2020 by 8.59 per cent points.
“Quarter-on-quarter, the sector grew by 17.15 per cent in the third quarter of 2020.
“It contributed 5.58 per cent to real GDP in Q3, 2020, lower than the 6.21 per cent it recorded in the corresponding quarter of 2019.”
Nigeria’s economy contracted by 2.48 percent in the first nine months following a 6.10 percent and 3.62 percent contraction in the second and third quarters respectively.
Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey
The Chairman of the Senate Committee on road maintenance, Senator Gersome Bassey, on Friday said Nigeria requires about N400 billion annually to maintain federal roads across the country.
The Senator, therefore, described the N38 billion budgeted for road repairs in the 2021 proposed Budget as grossly inadequate. According to him, nothing meaningful could be achieved by the Federal Roads Maintenance Agency (FERMA) with such an amount.
He said, “For the 35 kilometres federal roads in the country to be motorable at all times, the sum of N400bn is required on yearly basis for maintenance.”
Bassey “What the committee submitted to the Appropriation Committee in the 2021 fiscal year is the N38bn proposed for it by the executive which cannot cover up to one quarter of the entire length of deplorable roads in the country.
“Unfortunately, despite having the power of appropriation, we cannot as a committee jerk up the sum since we are not in a position to carry out the estimation of work to be done on each of the specific portion of the road.
“Doing that without proposals to that effect from the executive, may lead to project insertion or padding as often alleged in the media.”
Scarcity of Day-Old-Chicks Cripple Poultry Farmers in Akwa Ibom
Despite billions of Naira spent on Akwa Prime Hatchery and Poultry Limited by the Executive Governor of Akwa Ibom State, Udom Emmanuel, poultry farmers in the state said they had to order day-old-chicks from outside the state as the 200,000 capacity poultry farm developed specifically to make day-old-chicks and other poultry products available at affordable prices is almost empty at the moment.
The farmers expressed frustration over many challenges they face in the course of bringing day-old-chicks from outside the state. Usually, Ibadan, Enugu and sometimes as far as Kaduna, while the hatchery built and inaugurated in 2016 remains idle.
Mr Ekot Akpan, one of the poultry farmers who spoke with the pressmen said the state had not had it this bad.
Akpan said: “For the 12 years that I have been in poultry farming, this is the first time that poultry farmers have been so harshly affected by both economic and non-economic factors. And, quite unfortunately, nobody is available to offer any explanation.
“Farmers have been left at the whims and caprice of owners of the means of production.
“There seems to be no government regulation of the poultry industry. How, do you explain a situation where you wake up suddenly and the price of a day old chick is selling for N600, a bag of feed goes as high as N6,000.
“And, in a state that government claims to be pursuing agriculture as one of his cardinal programmes.
“For instance, in 2016, the state government said it has constructed an hatchery, and the intention according the government was to ensure availability of day old chicks at affordable price to farmers, but, quite, unfortunately, that effort has not yielded any tangible result.
“Farmers are still getting their day old chicks from Ibadan, Kaduna, and Enugu. So, the question now is where is the hatchery?
“One would have expected that farmers would be buying old chicks at humane prices, but, from all indications they acclaimed hatchery is a ruse. So, which one is the Akwa Prime Hatchery producing,” he said.
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