Nigeria’s oil sales declining daily – Okonjo-Iweala

18 May 2012, Sweetcrtude, ABUJA – NIGERIA’s Finance Minister, Dr Ngozi Okonjo-Iweala, says the nation’s crude oil production and sales was declining on a daily baisis.

She said, for instance, that in April, production declined by as much as 17 per cent.

The minister, who disclosed this to the House of Representatives Committee on Finance, who visited her office in Abuja on Thursday, listed this as the greatest challenge currently facing the Nigerian economy.

Okonjo-Iweala further told the committee members, led by their chairman, Honourable Abdul Jubrin, that the daily declining output had shrank the revenue accruing to the nation, but she affirmed that Nigeria was not broke.

She attributed decline in oil production to theft and smuggling, but stated that the government was not folding its arms over the matter, but rather was already addressing the situation through improved security measures in the oil-bearing Niger Delta area.

On the monthly meeting of Federation Accounts Allocation Committee (FAAC), which distributes money to the three tiers of government, the minister explained that delay in disbursing funds was not an issue of concern.

She said, “We are depending on a resource (crude oil) that sells in the market. Remember, sometimes, when you sell in the market, you do not get the money right away.

“Just like an ordinary seller in the market, there are sometimes when you are selling to your customers they will tell you that I will bring the money later. Please, give me credit for one or two days.”

About the Author

  • I hope you and your readers are moiitornng the conversations on this subject as it unfold at the National Assembly. As expected the past ministers in charge (Imoke & Agagu) did very well as they spurn the issue by quoting conflicting figures and statements that provoked several emetic reactions as I read through.Check Vanguard: . This statement made by Imoke is troubling:NIPP (Integrated Power Project) was conceptualized in 2004 when it was observed that a power plant had been constructed near gas source but it could not make use of the gas because all the gas is being committed by the powerful oil companies to their future contracts. So, there is no gas for us to meet our domestic needs. They make more money selling it abroad. Even if you put the plant on top of gas, you will find out that there is still no gas. Agagu too referred to the fact that the required gas lines weren’t constructed for several of the power plants built during their tenure. I still struggle to comprehend fully what Imoke and Agagu meant by those statements. The most incredible fact was that S6.2b was paid to contractors that have no record of registration at the Corporate Affairs Commission (CAC) under the National Integrated Power Projects (NIPP) programme (Guardian).Yet, this was at a time “Due Process was at peak season”. If the tears would come, I would have cried for Nigeria. This is the most unkind cut of all!