L
LequteMan
Guest
Nigeria has lost about $7b (approximately N2.1tr) revenue due to oil theft and the renewed militancy in the Niger Delta area, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikangi Baru has stated.
“Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets,” Baru said in his paper “Global Oil Prices, Militancy and Terrorism and its Impact on Government Revenue in Nigeria.”
“This implies that 60 per cent of oil production lost is NNPC-FGN equity.
“At an estimated price of 45 dollars per barrel, the total 2016 revenue loss to the Federation Account translates to about 7 billion dollars.
He said that apart from security challenges in the region, politics, judiciary, oil prices and production cost continued to impact negatively on the oil industry.
He said the money lost in this process “could have used to achieve major infrastructural milestones.
“This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of National budget; and a new 1,700 kilometre pipeline.”
He spoke at the 2016 Fiscal Liquidity Assessment Committee Retreat in Abuja.
“Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets,” Baru said in his paper “Global Oil Prices, Militancy and Terrorism and its Impact on Government Revenue in Nigeria.”
“This implies that 60 per cent of oil production lost is NNPC-FGN equity.
“At an estimated price of 45 dollars per barrel, the total 2016 revenue loss to the Federation Account translates to about 7 billion dollars.
He said that apart from security challenges in the region, politics, judiciary, oil prices and production cost continued to impact negatively on the oil industry.
He said the money lost in this process “could have used to achieve major infrastructural milestones.
“This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of National budget; and a new 1,700 kilometre pipeline.”
He spoke at the 2016 Fiscal Liquidity Assessment Committee Retreat in Abuja.
