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Nigeria Squandered $201.2bn In 10 Years –NEITI
In 10 years, Nigeria accumulated a total of $201.2bn in Excess Crude Account, which it squandered within the same period.
The Nigeria Extractive Industries Transparency Initiative stated this in its Occasional Paper (Issue 2), which it just issued.
The publication, which focused on ‘The case for a robust oil savings fund for Nigeria’, said despite current efforts to pull Nigeria out of recession, the economy remained vulnerable to one of the conditions that created the problem in the first place – lack of adequate and prudently managed savings in a period of plenty.
According to the publication, between 2005 and 2015, $201.2bn accrued to the nation through the instrumentality of the ECA, and the entire amount was shared among the three tiers of government within the period.
The ECA was created by the Federal Government to save oil sales above the annual budget benchmark price. Within the period, most state governments argued that the funds were illegal and opted that the money should be shared to meet immediate challenges.
According to NEITI, to overcome commodity price volatility and depletion of non-renewable resources, countries dependent on revenues from natural resources are usually advised to save for the rainy day and for the future generation.
Although Nigeria has created instruments for such savings such as the ECA and the Sovereign Wealth Fund, it has hardly retained much as leaders especially at the sub-national level have always argued that the rainy day is already around.
One of the major highlights of the publication indicated “Nigeria has about three decades of experience in implementing different oil revenue funds. However, attempts at oil revenue savings have been plagued by contested legal frameworks, governance issues and inadequate political will.”
Other highlights showed “Nigeria has one of the lowest natural resources revenue savings in the world. The balance in the three funds (0.5 per cent stabilisation fund, ECA and NSIA) is less than $3.9bn, not enough to fund 20 per cent of 2017 federal budget.
“Nigeria’s $1.5bn Sovereign Wealth Fund is one of the lowest in the world; it has one of the worst ratio to annual budget (10 per cent), and one of the lowest SWF per capita ($8), better only than war-torn Iraq and crisis-hit Venezuela but not by much.
“In contrast, Norway, a country of 5.2 million people (2.8 per cent of Nigeria’s 186 million people) has a Sovereign Wealth Fund worth $922bn (which is 23,641 per cent of the $3.9bn balance in Nigeria’s three oil revenue funds).”
The conclusion is that Nigeria has no prudent and robust oil revenue savings scheme that can tie it over expected volatility of oil prices and eventual depletion of its reserves in 38 years; neither does it have a strong mechanism for promoting inter-generational equity.
Engr Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has disclosed that the nation’s oil and gas reserves have risen to 37.50 billion barrels as of January 1, 2024.
This marks an increase from the 37.046 billion barrels recorded in May 2022.
Komolafe emphasised the implementation of robust policies aimed at enhancing and optimising oil and gas operations across the country.
Notably, gas reserves stand at 102.59 trillion cubic feet (TCF), with non-associated gas reserves reaching 106.67 TCF, culminating in a total of 209.26 TCF of gas reserves.
Addressing concerns during a press conference held in Abuja on Monday regarding crude supply regulation and enforcement, Komolafe underscored the importance of prioritising feedstock supply to local refineries while addressing grievances from oil producers and the Dangote Refinery within specified timelines.
This announcement follows recent reports of a decline in Nigeria’s crude oil production during February and March 2024.
According to data from the April 2024 Monthly Oil Market Report of the Organization of Petroleum Exporting Countries (OPEC), Nigeria’s crude oil production (excluding condensates) experienced its second consecutive monthly decrease, dropping to 1.231 million barrels per day in March from 1.322 million barrels per day in February.
OPEC attributed this decline, amounting to a reduction of 91,000 barrels per day, to factors communicated directly from Nigeria.
The Chairman, House of Representatives Committee on Federal Road Maintenance Agency (FERMA), Engr. Aderemi Oseni has commiserated with the senator representing Oyo North Senatorial District, Senator Abdulfatai Buhari over the loss of his mother, Alhaja Buhari.
The matriarch, who passed away on Monday, April 8, has left a void in the family that Oseni described as irreparable.
In a condolence message released on Wednesday by his media aide, Idowu Ayodele, in Ibadan, and made available to newsmen, the lawmaker expressed his deep sympathy, praying for Alhaja Buhari to find eternal rest in the arms of God.
Oseni, who also represents Ibarapa East/Ido Federal Constituency, urged Senator Buhari and his family to find solace in the legacy of achievements left behind by their late matriarch.
He emphasised the importance of cherishing the memories of her life and the successes attained by her children.
The statement read, “Distinguished Senator Buhari, I was deeply saddened to hear about the passing of Mama, Alhaja Buhari. Please accept my heartfelt condolences and deepest sympathy during this difficult time.
“Alhaja was a pillar of strength and a source of love and guidance for your family and community. Her legacy of kindness, wisdom, and resilience will continue to live on in the hearts of all who knew her.
“May you and your family find comfort and solace in the cherished memories you shared with her, and may the love and support of friends and well-wishers provide you with strength and courage in the days ahead.
“Please know that my thoughts and prayers are with you and your family as you navigate through this time of grief”, Oseni continued.
As Muslims globally observe Eid-el-Fitr, signifying the conclusion of the Ramadan fast, the lawmaker representing Ibarapa East/Ido Federal Constituency of Oyo State and Chairman of the House of Representatives Committee on Federal Road Maintenance Agency (FERMA), Engr. Aderemi Oseni has called upon Nigerians to prioritise nation-building efforts during this festive period.
Oseni, in a statement on Tuesday by his media aide, Idowu Ayodele, emphasised the importance of collective action and unity in advancing the nation’s development agenda.
He highlighted the significance of Eid-el-Fitr as a time for reflection, gratitude, and community solidarity.
“As we celebrate Eid-el-Fitr, let us not forget the critical task of nation-building that lies before us. Nigeria’s progress depends on our ability to work together, transcend divisions, and build a cohesive society,” the lawmaker stated.
The APC chieftain urged Nigerians to set aside differences and focus on common goals that promote peace, unity, and socio-economic prosperity.
Emphasising the need for inclusivity, Oseni encouraged citizens to actively participate in initiatives aimed at fostering national cohesion and development.
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