NECA claims Nigeria loses $2.5bn oil revenue monthly, demands reversal of Buhari’s policies

The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, said on Friday the country loses $2.5 billion in oil revenue monthly.

Oyerinde, who disclosed this in a statement in Abuja, blamed the development on Nigeria’s inability to meet the Organization of the Petroleum Exporting Countries (OPEC) 1.8 million barrels per day production quota.

He added that the 1.23 million barrels per day achieved by the country in December last year were not enough to prevent the losses.

Ripples Nigeria reported that Nigeria’s crude oil production fell by -11.6 percent (163,000 barrels) last year.

It started the year with 1.398 million barrels per day but settled at 1.235 million barrels per day in December.

The NECA chief said: “Crude oil production grew in the month of December 2022 by 4.2 percent month-on-month to 1.23million barrels per day, but remained significantly short of the 1.8million barrel per day allocated by OPEC to the nation, amounting to about $2.5billion loss monthly at an average of $100pb.”

Oyerinde also demanded the reversal of President Muhammadu Buhari’s government’s policies and a review of tax administration by the incoming administration to encourage economic growth.

READ ALSO: NNPC, partners lose $1bn oil revenue in one month

He added: “Deliberate efforts must be made to reverse some of the current policies and implement new ones. All leakages associated with government revenue must be blocked (oil theft, skewed concessions, fuel subsidy, etc.).

“A wholesome review of the tax administration to make it more equitable and investor-friendly should be initiated.

“With over 50 different taxes, levies and fees and Company Income Tax hovering around 35 percent, raising taxes in order to increase revenue will be counterproductive.

“As the nation nears the mark of N77trn in debt with negligible impact on infrastructural development, the incoming government must develop strategies to diversify the revenue base through the revival of the country’s lagging non-oil sectors.

“While there have been projections for a global recession in 2023, the time for a major paradigm shift in our economic philosophy is now.

“Over the last decade, the country has spent over N10tn on fuel subsidy, about N15.5tn on Capital Expenditure, N2.5tn on Health, and about N3.9tn on Education.

“This is a misplacement of priority and shows that critical developmental items such as education, health, and infrastructure have suffered due to crass misplacement of our economic priorities.”

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