A new investigation has shown the incredible amount of money Nigeria is losing on a daily basis because of the constant on oil facilities.
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Strong indications have emerged that the Federal Government, International Oil Companies (IOCs) and other indigenous oil producers may be losing up to N14.4 billion daily to attacks on oil installations and pipelines by the Niger Delta Avengers (NDA).
President Muhammadu Buhari on Thursday night, met with his predecessor, Dr Goodluck Jonathan, at the Presidential Villa, Abuja.
The meeting, said to have taken place at about 9.00 p.m., was not officially announced.
It was, however, speculated to have dwelt on the rising tension as well as oil and gas installation vandalism perpetrated by Niger Delta militants led by the NDA in the region.
The NDA has vowed to ensure that crude oil production is brought to zero level in the country until its demands are met.
Buhari was believed to be seeking Jonathan’s help to bring the crisis to an end and spare the nation’s economy of unwarranted damage.
In an apparent move to prepare the ground for this meeting, the president had in recent days been speaking glowingly about the former president whose activities in office have been the subject of investigations by the Economic and Financial Crimes Commission (EFCC).
Buhari had engaged in praising Jonathan over the defeat concession phone call the latter made to him before the final tally of the 2015 presidential election result was known.
President Buhari also, on Friday, hosted former President Olusegun Obasanjo to a secret meeting at the Presidential Villa, Abuja.
The meeting, which took place inside the president’s office, lasted for about 30 minutes.
The former president was approached for comments as he emerged from the president’s office but he declined to speak on the meeting on the grounds that it was already time for Jumat prayers and he did not want to waste further time since President Buhari needed to go to the mosque.
A government source expressed worries to Saturday Tribune over the spate of attacks on the pipelines and the effect on the 2016 budget.
“Two months from now, the effect will be known. What we are sharing now is money that accrued to our accounts about three months ago when there was relative stability in the oil sector. So, the effect of these militant activities will be known in August. It is very worrisome.
“You know those militants have almost crippled the oil industry, destroying an average of two major pipelines per day. By next month, states that will be able to pay salaries may not be more than five,” he said.
Vice-President Yemi Osinbajo, during the week, put Nigeria’s output at 1.6 million barrels per day (bpd) while the Avengers claimed they had reduced Nigeria’s output to 800,000 bpd.
The Head of Research, Ecobank Plc, Dolapo Oni, stated that Nigeria’s oil production had suffered a deficit of record 1.01 million barrels per day, raising the revenue losses by the country and the IOCs to N14.1 billion ($49.5 million) daily.
If the government is to be believed, the country is losing 600,000 bpd which is equivalent to N8.4 billion ($29.4 million) daily. On the other hand, going by the claims of the NDA, the country is losing 1.4 million bpd which is equivalent to N19.5 billion ($68.6 million) per day. The above calculations were based on N285 to $1 and crude price was based on $49 per barrel.
Nigeria’s quota from the Organisation of Petroleum Countries (OPEC) is put at 2.2 million bpd. This means Nigeria is allowed to sell officially 2.2 million bpd at the crude oil international market.
According to a source at one of the loading terminals who pleaded anonymity because he wasn’t authorised to speak to the media, “production is not as low as it was in 2008 when we were producing at about 700,000 bpd. But the activities of the NDA are taking their toll on the country’s output.”
When asked to be specific about Nigeria’s current output figure, he stated that “the official figures will be out by Monday because we collate the figures from 26 terminals across the country and add them up to have an official figure.
“However, if I were you, I would go with the Vice-President’s (Professor Osinbajo’s) position because he must have been briefed ahead of making that pronouncement.”
Oni argued further that the crude production in Nigeria, hitherto the biggest crude producer in Africa, had now dipped to about 990,000 barrels per day.
In a more drastic estimate of the economic implication of attacks on oil and gas installations, Oni, according to Reuters, said: “Between pipeline repairs and militant attacks, Nigeria is probably producing no more than 990,000 barrels of oil every day.”