Nigeria loses N1.1 trillion to militant attacks

*Dr Ibe Kachikwu, Nigeria's minister of state for Petroleum.

*Dr Ibe Kachikwu, Nigeria’s Minister of State for Petroleum.

29 August 2016, Abuja – Nigeria lost over N1.1 trillion in oil revenues in the last five months due to militants’ attacks on oil installations, Daily Trust investigations have shown.

The figure does not include losses in gas revenues resulting from disruptions in gas supplies to domestic power and industrial plants as well as export markets.

There were at least 28 attacks on oil infrastructure between February 10, 2016 and end of last month by the Niger Delta Avengers, Daily Trust findings show.

The militant group had announced a ceasefire as the Nigerian military began Operation Crocodile Smile, which is aimed at ridding the oil region of militancy.

Trillions draining away

The 2016 budget is based on daily crude production of 2.2 million barrels per day but the attacks pushed output down by about a third between April and August 29.

Production dropped by 300,000 bpd in April according to Nigeria National Petroleum Corporation (NNPC) figures.

In May Minister of State for Petroleum Resources Dr. Ibe Kachikwu said production went down from 600,000 bpd to 1.5m bpd.

It again dropped by 700,000 bpd in June, 700,000 bpd in July and last Thursday output was down to around 1.4m bpd with 800,000 bpd lost.

At an average oil price of $42.01 and 46.94/barrel and exchange rate of N197/$ in April and May, the country was denied crude oil revenues valued at $378m or a Naira equivalent of N75billion and N171billion respectively.

According to Central Bank of Nigeria (CBN) and NNPC data, the average price of crude oil in June and July were $48.79 and N41.37 per barrel, while the value of the local currency was estimated at N285 and N292 to a dollar.

The country was therefore denied crude oil revenue valued at N292billion and N262billion respectively.

 

  • Daily Trust
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