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Oil Revenue Falls by N30bn in Two Months

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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.

 Oil and gas earnings for 2014 were not published by the NNPC. The corporation only started publishing its proceeds from crude oil and gas sales in August 2015 after the reorganisation of its management by President Muhammadu Buhari.

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.

 

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Delta State Gov Okowa Presents N378.48 Billion Budget for 2021

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Ifeanyi Okowa Presents N378.48 Billion Proposed Budget for 2021

The Executive Governor of Delta State, Senator (Dr) Ifeanyi Okowa, on Tuesday presented a N378.48 billion budget to the state’s House of Assembly for consideration for the 2021 fiscal year.

The budget christened “Budget of Recovery” appropriated N207.52 billion for Capital Expenditure while Recurrent Expenditure was allocated N171.32 billion.

According to the Governor, capital expenditure accounted for 54.76 percent of the budget while 45.24 percent represented recurrent expenditure.

He explained that the allocations were in line with his administration’s agenda of spending more on projects and programmes that would impact positively on the socio-economic well-being of the people of Delta.

The proposed budget for 2021 is N96.2 billion or 34.05 per cent more than the N282 billion approved for 2020.

The governor said that the 2021 budget proposals reinforced the state government’s commitment to road infrastructure, education, health, job and wealth creation programmes as the principal-drivers of the Stronger Delta agenda.

According to him, N113 billion, representing 89.94 per cent of the capital budget is allocated to the economic sector while N35 billion is allocated to the social sector; the administration sector got 10.93 billion and the regional sector, N42 billion.

“In 2021, we propose to spend N66.66 billion on Road Infrastructure; N6.79 billion on Health; Education will gulp N23.55 billion; Agriculture, N2.04 billion and Water Sector, N1.83 billion.

“Job and Wealth Creation Bureau will gulp N1 Billion and Youth Development, N1.25 billion. These key sectors are very essential in our 2021 budget,” Okowa said.

Okowa also explained that due to the negative impact of COVID-19 on the economy and the world at large, government spending was significantly affected by the global pandemic and that Delta was no exception.

The governor, therefore, stated that “the proposed 2021 Budget for Delta is primarily focused on protecting and supporting our people in a COVID-19 environment, accelerating infrastructural renewal, incentivizing growth, enhancing job creation, engendering social inclusion and developing sustainably.

“Overall, the proposed 2021 Budget is predicated on inclusive economic growth that is sustainable and people-centred, with strengthening fiscal sustainability through increased efficiency in spending, improved revenue mobilization and debt sustainability.

“It also entails improving processes and systems in Public Financial Management, and Monitoring and Evaluation, to bolster better public sector service delivery.”

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Economy

FG to Create 5 Million Jobs for Nigerian Youths in the Power Sector

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Federal Government Plans to Create 5 Million Jobs for Youths in the Power Sector

The Federal Government is working on creating at least 5 million jobs for Nigerian youths in the power sector, according to the Minister of Power, Engr. Sale Mamman.

The minister, who spoke at a stakeholder meeting in Jalingo, Taraba State, said the youths should foster peace and harmony as the Federal Government, in line with some of their demands, is working on creating massive job opportunities for them in the power sector.

He said the initiative is part of president Muhammadu Buhari’s plans to lift 100 million people out of poverty within 10 years.

Mamman explained that the youths will benefit from the Siemens Presidential Power Initiative as more opportunities will be available in renewable energy, installation and the maintenance of meters.

He said: “Plans are ongoing to kick start this and it is being designed to ensure that majority of the firms and the installers are Nigerian youths. This is also part of the commitment of President Muhammadu Buhari’s focus on lifting 100 million people out of poverty within 10 years.

“From the briefings I have received so far, the youths are taking up opportunities in this aspect as well as in renewable energy. This is another way the government will be empowering young Nigerians as the local assembly; installation and the maintenance of these meters are largely handled by our industrious youths.”

“The minister urged the youths to vigilant and resist and attempt by some people to use them to incite violence for their sinister motive, noting that the Federal Government was tailoring more programmes for the youths through the Siemens Presidential Power Initiative and in building capacity on renewable energy.”

“There is the assurance of Mr. President that Nigerians will be beneficiaries of the Siemens project which will turn around the power supply situation of Nigeria. When this happens, industries will be revived and SMEs driven by youths will thrive more.”

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Economy

Lagos Loses N1 Trillion to #EndSARS Protest, a Year Budget – Gov

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Lagos Needs N1 Trillion to Fix Vandalised Infrastructure, a Year Budget – Gov

The Governor of Lagos State, Babajide Sanwo-Olu, has puts the total economic cost of past week destruction and vandalism in the state at about N1 trillion.

Sanwo-olu, who spoke with the speaker of the House of Representatives, Hon. Femi Gbajabiamila, that was on a fact-finding visit to Lagos on Sunday, said the state may spend up to N1 trillion to fix damages done to infrastructure.

Speaking on the situation, Femi Gbajabiamila, said “The House of Representatives will do all it can to compensate all those who suffered brutality including policemen that lost their lives in the process.

“Also whatever the house can do in rebuilding Lagos and other states it will do. We are now in a state of reconstruction. What must be done will be done.

“I learnt from the governor of Lagos State that it will take N1.0 trillion to rebuild what had been lost and I asked him what is the budget size of the state he said about N1.0 trillion. You can see we are moving backward.

Rotimi Akeredolu, Chairman of the South West Governors, who was part of the visit, stated, “We are indeed surprised at the extent of damage to lives and properties in Lagos. We will be right to say Lagos was turned into a war zone.

“We are deeply concerned with the ease with which public buildings, utilities, police stations and investments of our people have been burnt despite the proximity of security agencies to those areas. However, while responding to the total number of government’s buildings burnt among others,” Lagos State Commissioner for Information and Strategy, Mr Gbenga Omotoso, stated.

We are still counting. The state is still taking inventories of all that happened and not until all that is concluded we can’t not ascertained for now the total number of burnt structures. But I can tell you it’s very huge.

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