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SPENDTHRIFT! Nigeria blows $1tn in 37years with little to show

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Daura’s sack not enough, Saraki tells Osinbajo

The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that Nigeria has only been able to save $3.9 billion from sales of crude oil worth $1.09 since 1980.

The country, within the 37 years period has expended well over one trillion, eighty-eight billion, seven hundred million with little to show for it in terms of socio-infrastructural or economic development.

Despite the resources earned from crude oil, Nigeria has the third highest number of poor people in the world, after China and India. About 70 million Nigerians are reportedly living on less than one US Dollar a day.

Low human development level, social conflicts and enviromental degradation are just a few problems which characterize the current state of development in Nigeria.

In terms of dollar value worth of crude oil export, Nigeria in 2016 earned more than, Angola, Norway, Mexico and Qatar.
NEITI’s Executive Secretary Waziri Adio who gave the figure on Tuesday in Abuja, at the presentation of its occasional paper, titled: “The case for a robust oil savings fund for Nigeria”, noted that Nigeria has a current balance of $3.9billion as at June 2017 in its three savings funds.

He said, “Nigeria currently has three oil savings funds. They are the Sovereign Wealth Fund with $1.5billion, the Excess Crude Account $2.3billion, and the Stabilisation Funds with N29.02 billion ($95million)”.

Read also: Nigeria to rake in $1.2bn from commercialising drone services

While stressing the inability of Nigeria to save, Asio lamented that “In the last 40 years of oil production, Nigeria has extracted about 31billion barrel of its oil reserves”, even as he called on the Federal Government to consolidate oil trust funds into the Nigeria Sovereign Wealth Fund to yield return on investment.

According to him, with $3.9 billion in Nigeria’s oil savings funds, accounting for 16 per cent of the N7.44 trillion of the federal budget, the country’s economy is highly vulnerable and unprotected.

According to the NEITI boss, “when people are talking about how we ended in this trouble and how we will get out of it, little attention is paid to savings – that we didn’t have enough savings, when the prices were high, we thought it would be high forever living in Fools’ paradise and when the prices fell, we didn’t have enough to fall back on.”

He harped on the need for Nigeria to move away from its present state of “spend it all” or “save and spend attitude” to real savings culture.

Adio added that most countries that established one or more oil revenue funds have accumulated huge savings in their stabilisation accounts, but noted, that, Nigeria’s ECA has been dogged by questions about its constitutionality, which have hindered regular remittances into the accounts.

Adio went down memory lane to recall that it was not the first time Nigeria will be experiencing economic downturn. Nigeria, he recalled, faced a similar challenge in 2008/2009, but overcame it without having to borrow since the country had an excess of $60 billion in reserves.

In his words: “We were one of the very few countries that didn’t have to go and borrow, and we didn’t have to go through what we are going through now and this happened in 2008/2009 and by the time the prices started rising again and selling above $100, we were just blowing it.”

 

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0 Comments

  1. JOHNSON PETER

    July 19, 2017 at 1:25 pm

    How can they save much when there is poor leadership. Leaders we have since 1980 downwards are nothing but thieves. IBB stole enough, Ernest Shonekan ate little, Abacha cut his own huge chunck, Abdusalam swallowed money, obj stomach money, yardadua was God fearing but his petroleum minister slash his own, Goodluck Jonathan and his cohorts loaded our money in trailers, all from our crude oil money. That’s why we the biafrans can’t cope anymore, we have to go

    • yanju omotodun

      July 19, 2017 at 2:28 pm

      You must be a student of history. Thanks for the history but sorry for the last statement about Biafra because it’s a mirage

  2. Abeni Adebisi

    July 19, 2017 at 1:49 pm

    It is simple, our governments have been useless since 1980, the problem didn’t just start when APC got into power, here is another reason for Nigerians to chill and have patience with this present government. There is no point vetting anger on Buhari-led government unnecessarily.

    • Anita Kingsley

      July 19, 2017 at 2:45 pm

      What difference has APC made since they assumed power? They are all the same, nothing is going to change in this country until corrupt politicians start going to jail over corrupt practices.

  3. Animashaun Ayodeji

    July 19, 2017 at 1:55 pm

    Our leaders are fond of living lavish lifestyle, with this huge money that no one in this country as big as it is can account for, it shows our leadership in Nigeria is extremely bad and those in charge of Government are heartless. Nigeria is blessed with everything we need, but failed to utilize what we have. PITTY!

    • Balarabe musa

      July 19, 2017 at 7:42 pm

      You are right but let’s thank God for the government of BABA Buhari, he is making effort to transform the country just that his effort is latent

  4. Rollana Dike

    July 19, 2017 at 2:53 pm

    And the same people has regroup, planing to take power again,Nigerians this best government of honesty n accountability

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