‘India, Spain, France Bought Oil Worth N1.787tn from Nigeria in 2018’

• ‘India, Spain, France Bought Oil Worth N1.787tn from Nigeria in 2018’

The Nigeria Natural Resource Charter (NNRC), which is part of a global initiative designed to help governments and societies effectively harness the opportunities created by natural resources, has disclosed that three countries – India, Spain and France, were the biggest buyers of crude oil produced from Nigeria’s oil fields in the Niger Delta in 2018.

NNRC which promotes policy reform of the Nigerian extractive sector using its 12 economic principles known as ‘precepts’ as a guide, explained in a twitter chat that the three countries bought crude oil worth N764.88 billion; N522.12 billion; and N500.31 billion, respectively from Nigeria in 2018.

Combined, it stated that the monetary value of crude oil bought by the three countries was worth N1.787.31 trillion.

Also, five other countries – South Africa, Netherlands, Indonesia, Brazil and United Kingdom – bought oil worth N1.298.45 trillion, while the United States and Canada bought oil worth N400.66 billion from the country within the same transactional period.

“India is the highest importer of Nigeria’s crude oil, purchasing N764.88 billion worth of the commodity; followed by Spain with N522.12 billion and France, with N500.31 billion respectively.

“Other buyers are South Africa, Netherlands, Indonesia, Brazil and United Kingdom, valued at N335.28 billion, N276.37 billion, N256.3 billion, N226.2 billion and 206.3 billion respectively. United States and Canada bought crude oil worth N201.65 billion and N199.01 billion respectively,” said the NNRC on its confirmed official twitter handle.

Similarly, the NNRC has highlighted the need for Nigeria to adopt proper resource management framework in its oil and gas revenues.

It explained at a recent workshop in Lagos that whatever natural resource a country is endowed with, proper management of revenues accrued from it decides the rate of growth, and quality of development of that nation or otherwise.

The workshop which was organised in collaboration with the Nigeria Institute of Legislative and Democratic Studies (NILDS) deliberated on the needs for proper policy that would help Nigerians benefit maximally from its oil and gas resources.

At the workshop, Mr. Israel Aye, who is the founding partner and current managing partner of Primera Africa Legal, explained that the degree of prudency applied to the management of resources and revenues that accrue from natural resource will determine whether it will be a blessing or a curse to the people.

According to him, countries that just mine and trade their natural resource tend towards poverty because its economy will lose the benefits of the value-chain in processing of such commodity, while those who process the commodity before it is exported and also incorporate its use within the economy of that country tend towards prosperity as they enjoy the benefits of the value-chain.

He noted that the oil and gas resources in Nigeria have in the past six decades been poorly managed, which has deprived the country of its full potentials and benefits.

Among several issues that needed to be address for Nigeria to gain maximum potential in the petroleum industry according to a paper presented by Aye, included legislatives obsolescence and uncertainty; unclear terms for domestic refining; cost assessment control; lack of fiscal neutrality; high barriers to entry; zero royalty in deep offshore; non-value adding incentives; windfall from price increase; multiple taxation; insufficient clarity around Production Sharing Contracts (PSC); and declining competitiveness.

He urged Nigeria to learn from countries such as Norway, the state of Texas in the United States, Aberdeen in Scotland, the Gulf States, which he stated seemed to have gotten it right in terms of management of their petroleum resources.