Vandalisation cripple national economy

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Vandalisation cripple national economy
Vandalisation cripple national economy

Nigeria’s ability to earn substantial revenue from oil and gas resources to finance its programmes is being hampered by the continued vandalisation of assets as losses hit an average of 11,000 barrels per day for oil major and at least $2 billion from the destructive activities on the Nembe Creek Trunkline (NCTL) vandalism in the last four years.

At $65.60 per barrel based on the OPEC basket price, Shell’s loss of 11,000 bpd averages $261 million yearly besides the liabilities suffered by other operators.The lost revenues, observers noted, were sufficient to fund critical ministries in the 2019 budget.
Industry data show that 42 per cent of the Appropriation Act, representing N3.73 trillion, is to be financed from oil and gas funds, even as the nation hopes to get a higher production quota from agreed OPEC cuts that was extended till March 31, 2020.

According to stakeholders, while the indigenous players have demonstrated growth, especially in terms of crude oil production and exploration, the survival of the firms is being threatened largely by high debt profile, cash flow pressure, growing oil theft, multiple fines and levies, host community challenges and debt service commitments.