Sunday Akoji wrote:
60,000 barrel of crude oil lost daily due to pipeline vandalism.
- NNPC
Who know how much the NNPC pay for to secure the
pipelines?
Let me give you a hint:
If 60,000 barrel of crude is lost every day due to vandalism, in
a week we would have lost 420,000 barrels. In a month that
will be 1,680,000 barrels. This will translate into 20,160,000
barrels per annum.
Let us assume the price of crude oil is $50 per barrel, the cost
of over 20 million barrels of crude oil lost to vandalism will be
$403,200,000 (Four hundred and three million, Two hundred
thousand Dollars) equivalent to N80 billion going by today's
exchange rate.
Now in addition to these loses from vandalism alone, we also
lost about 400,000 barrel daily to OIL theft. This is estimated to
cost the nation an annual revenue of N533 billion.
Putting the lost from vandalism and theft together, we have
N613 billion as loses.
Here is the puzzle:
The amount of money the NNPC spend in order to secure the
pipelines is more than N700 billion annually.
Putting these two cost together we arrived at N1.3 trillion as
revenue lost to pipeline vandalism, oil theft and cost of
securing the pipelines.
If you factor in a subsidy regime of over N2 trillion we arrive at
N3.3 trillion which is over 75% of our annual budget.
So oil alone can conveniently finance our national budget
without other sectors contribution. But the reverse is the case.
We don't even know how much crude oil we produce but we
know how much is lost. This says a lot about transparency in
the oil sector.
It is disheartening when we hear of speculation's that the
Federal Government will borrow N2 trillion to finance the
deficit in the 2015 budget.
I just showed you how a whopping N3.3 trillion is lost from
vandalism and oil theft and subsidy.
If the government can stop this avenue of waste, we won't
have to borrow a dime to finance a deficit budget.
The irony is that the cost of stealing our crude is even cheaper
than the amount of money the government pays to prevent oil
theft and vandalism.
Is that good enough?
#VoteWisely
60,000 barrel of crude oil lost daily due to pipeline vandalism.
- NNPC
Who know how much the NNPC pay for to secure the
pipelines?
Let me give you a hint:
If 60,000 barrel of crude is lost every day due to vandalism, in
a week we would have lost 420,000 barrels. In a month that
will be 1,680,000 barrels. This will translate into 20,160,000
barrels per annum.
Let us assume the price of crude oil is $50 per barrel, the cost
of over 20 million barrels of crude oil lost to vandalism will be
$403,200,000 (Four hundred and three million, Two hundred
thousand Dollars) equivalent to N80 billion going by today's
exchange rate.
Now in addition to these loses from vandalism alone, we also
lost about 400,000 barrel daily to OIL theft. This is estimated to
cost the nation an annual revenue of N533 billion.
Putting the lost from vandalism and theft together, we have
N613 billion as loses.
Here is the puzzle:
The amount of money the NNPC spend in order to secure the
pipelines is more than N700 billion annually.
Putting these two cost together we arrived at N1.3 trillion as
revenue lost to pipeline vandalism, oil theft and cost of
securing the pipelines.
If you factor in a subsidy regime of over N2 trillion we arrive at
N3.3 trillion which is over 75% of our annual budget.
So oil alone can conveniently finance our national budget
without other sectors contribution. But the reverse is the case.
We don't even know how much crude oil we produce but we
know how much is lost. This says a lot about transparency in
the oil sector.
It is disheartening when we hear of speculation's that the
Federal Government will borrow N2 trillion to finance the
deficit in the 2015 budget.
I just showed you how a whopping N3.3 trillion is lost from
vandalism and oil theft and subsidy.
If the government can stop this avenue of waste, we won't
have to borrow a dime to finance a deficit budget.
The irony is that the cost of stealing our crude is even cheaper
than the amount of money the government pays to prevent oil
theft and vandalism.
Is that good enough?
#VoteWisely
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