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Nigeria’s petroleum sector accounts for almost 60% revenue in 2017

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DESPITE that oil prices are still not back to the $100 plus per barrel territory, Nigeria’s petroleum sector still accounted for almost 60 percent of government’s revenue and more than 80 percent of export earnings in 2017.

This was revealed on Monday in Abuja by the Executive Secretary of the Nigerian Extractive Industries Transparency Initiative, (NEITI), Mr Waziri Adio at the ongoing Symposium on the Next Step for the Petroleum Industry Bill.

He stressed that the fact that the petroleum sector still fetches the chunk of government’s revenue, calls necessary actions on the legal and institutional frameworks to be put in place for adequate optimisation of the oil and gas sector.

“And given the disproportionate impact of government revenues and export earnings on our economy, it will not be far-fetched to insist that this sector remains the backbone of not just our economy but also of national life”, he added.

Before slum in oil prices from over $100 per barrel in 2015 to below $30p/b, Nigeria’s oil and gas sector pulled in over 80 percent of government revenue.

Currently, oil prices hover around $60p/b after reaching $71p/b early 2018.

Nigeria is a major of crude oil and importance or of this commodity has been highly manifested in the nation’s economy. Starting from the early 70’s, the petroleum industry has become the dominant industry in the economy following quickly after the agriculture the dominant industry before the discovery of crude oil. It has dictated the pace of economic, political, social and cultural progress in the country.

According to the Central Bank of Nigeria (CBN), Nigeria’s crude, and oil gas sales rose sharply to N1.22 trillion in 2017.

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In its Economic Report for the Fourth Quarter of 2017, the amount earned by the Federation from crude oil and gas sales in 2017, appreciated by 213.6 percent or N831 billion as against N389.55 billion recorded in 2016.

Speaking further, however, Waziri said the sector lacks good management and governance.

“The search for better management and governance of the sector has assumed the salient than it did”

Now that the country is close to passing the first part of the Petroleum Governance Industry Bill, PGIB into law, Waziri urged all to “focus on the next tasks” in a way that will proactively and strategically ensure the intention of the proposed laws are fully realised.

He commended the 8th National Assembly and House of Representatives for getting the PGIB passed within two years as against 13 years which the Bill had been delayed.

“Even as we await the harmonised PGIB, it is clear that a landmark has already been recorded”, he said.

However, he added that the job is not completed until other three bills of the Bill are passed and signed.

“But we will be deluded to think the job is done. It is not. Succumbing to such temptation will be wrong-headed and misdirected. And here we are just talking about the need to finally pass the PGIB and transmit it to the President for assent. And not even about ensuring that the other three bills are passed and signed. It is more about ensuring effective implementation of the resultant laws in the ways that will reposition and transform our oil and gas sector to become a real blessing and not this needless curse for our people,” he said.

The post Nigeria’s petroleum sector accounts for almost 60% revenue in 2017 appeared first on Tribune.

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