HOW $15B NIGERIA-INDIA DEAL WILL TACKLE FOREX CRISIS

The Nigeria-India upfront oil payment deal will help the Federal Government to tackle the foreign exchange (forex) crisis in the country.The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, initiated the deal during a three-day working visit to India.

In an exclusive interview with The Guardian in August, the minister had disclosed his intention to search for a market, particularly in Asia and other oil-consuming nations, with a view to shoring up the naira, while guaranteeing revenue to the government.

Read more @ The Guardian

FORCE MAJEURE ON BONNY, FORCADOS CRUDE OIL TERMINALS SLASHES SEPT. REVENUES

Declining oil production and export volumes due to militancy and large-scale crude theft cut the Nigerian government’s gross revenue in September by about 12% from August to N279.75 billion ($8 billion), the finance ministry said Friday.

The ministry said that despite the rally in global oil prices averaging $48.43/b in June, Nigeria’s export volume declined by 1.15 million barrels in that month, resulting in a $46.52 million drop in oil export sales for the government.

Read more @ SweetCrude Reports

NEITI MAY RETAIN PART OF RECOVERED REVENUE TO BRIDGE FUNDING GAP

There are indications that the law establishing the Nigeria Extractive Industries Transparency Initiative (NEITI), may be amended to enable the Agency retain certain percentage of recovered revenues from extractive companies to bridge its funding gap.

This was disclosed by the Chairman of Senate Committee on Petroleum Resources (Upstream), Tayo Alasoadura, in Abuja, when he led the committee to the NEITI Secretariat on oversight function.

Read more @ Guardian NG

RESPITE FOR CASH STRAPPED OIL FIRMS, BANKS AS FORCADOS RESTARTS

There could be a return to the better days for Nigerian oil producing companies that are neck deep in debt obligations to the banks, following confirmation that crude will start to flow in the Forcados terminals that had hitherto been disrupted by militant attacks in the Niger Delta region.

This will bring relief to the oil companies which had suffered operational and revenue shortfalls and had to lay off staff. It will likewise set up royalty payments accruing to the Federal Government from the oil companies, as well as increase government's earnings from crude.

Read more @ BusinessDay

NIGERIA EARNS N1.7 TRILLION FROM CRUDE OIL EXPORT IN Q2

Despite calls for diversification of Nigeria’s revenue base to other sectors like manufacturing and agriculture, oil and gas accounted for 92.9 per cent of the country’s export earnings during the second quarter of 2016.

Specifically, out of the N1.872 trillion of export earnings by the Federal Government during the second quarter of 2016, oil and gas accounted for N1.735 trillion or 92.9 per cent of the total export value.

Read more @ Guardian NG

NLNG RAISES GOVT REVENUE BY $26BN IN FIVE YEARS

The Nigeria LNG Limited says it has contributed more than $26bn to government revenue in the last five years. The Managing Director of the company, Mr. Tony Attah, disclosed this in Abuja when he met with the Minister of Information and Culture, Alhaji Lai Mohammed.

He also sought the intervention of the executive arm to prevail on the National Assembly not to interfere with the NLNG Act 2004.

 

Read more @ Punch Online

OPEC REVENUE TO PLUNGE FURTHER TO $341 BILLION IN 2016

Based on United States (U.S.) Energy Information Administration (EIA) price forecasts, revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC), is expected to fall to $341 billion in 2016.

The agency, which believed that the revenue could still increase to $427 billion in 2017, put the cartels earnings in 2015 at $404 billion in net oil export revenue in 2015, representing a 46 per cent decline from $753 billion earned in 2014.

Read more @Guardian Online

NIGERIA, OTHERS NEED OIL INDUSTRY REFORMS – PWC

Nigeria and other African countries should reform their regulatory, fiscal and licensing systems to attract oil and gas investors, a professional services firm, PwC, has said.

 

The PwC’s ‘Africa Oil and Gas Review 2016’ report noted that the decline in the global oil price had led to a reduced level of activity across the African continent and had an impact on countries that traditionally depend on oil and gas revenue

 

Read more @ Punch Online

SAUDI ARABIA’S OIL PRICE CUT THREATENS NIGERIA’S N820B REVENUE TARGET

The expected oil-related N820 billion revenue to finance the 2016 budget is being threatened by the recent reduction of prices for Arab light by the world’s highest producer of crude oil, Saudi Arabia.

The Federal Government had pegged the 2016 budget on crude oil benchmark of $38 a barrel and 2.2 million barrels per day production, which would have earned the country N840 billion this year.

Read more @ The Guardian

OIL MAJORS’ HY1 LOSSES MAY HURT NIGERIA’S 2017 REVENUE PROJECTIONS

The dip in profits reported by oil majors in their second-quarter 2016 outlook released last week may yet put further strain on Nigeria’s depleting oil revenue and 2017 budget projections, as taxes and royalties from their operations in Nigeria plateau.

 

This comes as OPEC’s crude oil output was disrupted in July by militant attacks in Nigeria and political disputes in Libya, according to a Bloomberg News survey.

 

Read more @ BusinessDay

PRESIDENCY PROPOSES $42.5 OIL PRICE BENCHMARK FOR 2017

For the next fiscal year, the executive arm of government has proposed a crude oil benchmark price of $42.5 per barrel, up from the $30 in the 2016’s budget.

An estimated N7.775 trillion is expected as revenue to be generated from the oil mineral resources alone based on the proposed $42.5 benchmark price and an estimated 2.2 million barrel per day oil production volume.

Read more @ Guardian

NEITI, EFCC GO AFTER OIL FIRMS OVER UNREMITTED $11 BILLION

The Economic and Financial Crimes Commission (EFCC) will soon embark on probe of erring oil firms in Nigeria over unremitted oil revenue to the Federal Government.

To ensure that anyone found guilty of misappropriation of the country’s oil revenue is prosecuted, Nigeria Extractive Industries Transparency Initiative (NEITI) and the EFCC have formed alliance to study the reports and identify areas where financial crimes have been committed against the nation.

Read more @ The Guardian

OIL PRICE: NIGERIA LOSES $45.9M REVENUE IN APRIL

Nigeria recorded a revenue loss of $45.9 million in April, according to Minister for Finance, Mrs. Kemi Adesun.

The revenue loss was as a result of the drop in the average price of crude oil from $39.04 in December 2015 to $29.02 in January this year, the minister said.

 

Read more @ Sweetcrude Report

FG EYES N1TN JV FUNDS TO FINANCE BUDGET DEFICIT

The Federal Government may use money set aside for funding joint venture projects with foreign and local oil firms to make up any shortfall in the 2016 budget if its revenue projections are not met, the Minister of Finance, Mrs. Kemi Adeosun, has said.

 

The nation has been trying to boost tax revenues and the non-oil income to fund a record N6.06tn 2016 budget aimed at reviving Africa’s biggest economy hit by the slump in oil prices

 

Read more @ Punch Online

STAKEHOLDERS IDENTIFY OPTIONS BEYOND CRUDE OIL RESOURCES IN NIGERIA

Nigerian economy is mono-cultural, depending on a single commodity for revenue generation. Other sectors have been relegated to the background, while the management of oil revenues has proven inefficacious in driving the economy to bring about the needed level of development.

With the recent plummeting crude oil prices and drop in the country’s daily revenue by half, industrialists and experts who gathered at the Lagos Chamber of Commerce and Industry (LCCI)/
PricewaterhouseCoopers (PwC) forum, called on the Federal Government to look beyond crude oil for economic development.

Read more @ The Guardian

NNPC FAILED TO REMIT N4.9TR TO FEDERATION ACCOUNT, SAYS FISCAL COMMISSION

Amid the denial by the Nigerian National Petroleum Corporation (NNPC) of the allegation by the Auditor- General of the Federation ( AuGF), Mr. Samuel Ukura, that it didn’t remit into the Federation Account N3.25 trillion crude oil minerals revenue, the Revenue Mobilisation, Allocation and Fiscal Commission ( RMFAC) has said the amount quoted by the AuGF was under-reported.

According to the commission, the amount standing to the NNPC as un-remitted liability is indeed N4.9 trillion, explaining that the N3.25 trillion only represents the corporation’s liability in 2014. Before then it said NNPC had a pending liability which if aggregated would make it N4.9 trillion.

Read more @ The Guardian

AUDIT REPORT EXPOSES OVER N3TR FRAUD AT NNPC, ONSA

A damning audit report from the Auditor-General of the Federation, Samuel Ukura, which was submitted to the National Assembly yesterday showed monumental corruption in some Federal Government’s establishments.

Key aspects of the 2014 report which was presented to the Clerk to the National Assembly (CNA), Salisu Maikasuwa, include the alleged refusal of the Nigerian National Petroleum Corporation (NNPC) to remit some N3,234,577,666,791.35 trillion revenue for the sale of domestic crude oil to the federation account

Read more @ The Guardian

NIGERIA LOSES N139.2B MONTHLY TO GAS FLARING

Nigeria has continued to lose N139.2 billion monthly to gas flaring following the inability of the Brass and Olokola liquefied natural gas companies to come on stream to reduce the revenue-sapping situation.

The country lost up to $814.14 million (about N162.8 billion) to gas flaring in 2015 alone.

Read more @ The Guardian

GOVT DIVERTS N813.6B TO FUND JOINT VENTURES

As a further indication of the oil and gas sector’s loss of its status as the nation’s cash cow, the Federal Government’s revenue of $3.191 billion or N628.6 billion (at the rate of N197 per dollar) from exports in the industry, which was supposed to be retained from April to December 2015, has been used to meet Joint Venture (JV) Cash Calls obligation.
Meanwhile, the grim reality of the effect of revenue drop in the country manifested evidently in the somewhat failed execution plan of the Federal Government budget in the second quarter of 2015 as only a paltry N5.14 billion was released for the financing of projects.

Read more @ The Guardian

GAS FLARING: FG MOVES TO END N500BN ANNUAL LOSSES

The Federal Government is plotting to end the N500 billion ($2.5 billion) annual losses in revenue to gas flaring by the oil companies in Nigeria through a fresh legislation, New Telegraph gathered at the weekend.

A source at the ministry of petroleum resources told this newspaper that a new deadline is being planned to reduce the 42-year-old air and environmental pollution in the Niger Delta.

Read more @ New Telegraph