How FG losses crude earnings to IOCs metering

The Federal Government’s reliance on the International Oil Companies (IOCs) to determine the quantity of oil production is negatively affecting the country’s crude earnings.

The Guardian had reported that the petroleum industry earned $276.642 billion (N84.6 trillion) in the last five years, and only N8.41 trillion of the sum was spent on budget from 2013 to 2017. The nation’s total budget within the period under review was N28.147 trillion.

The Federal Government’s actual share of oil-related revenue was N1.99 trillion in 2013; N1.98 trillion in 2014; N1.64 trillion in 2015; N820 billion in 2016 and N1.98 trillion in 2017.
Findings by The Guardian revealed that the government has no multi-phased, calibrated meters at the oil wellheads, flow stations and export terminals to determine the quantity of crude oil produced and exported by the IOCs.

The Guardian, June 29, 2018

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