The Nigerian state, during the five-year Presidency
of Goodluck Ebele Jonathan, earned a total of N51
trillion from petroleum resources. The money is part
of the N96.212trillion the country earned in 58years
of crude oil sales.
Of this princely sum, which accounts for about 80
per cent of the country’s revenue, only N12.258
trillion (just about 14% of total) has been paid to the
oil producing areas as derivation.
The figure is N35.848 trillion less than the N48.106
trillion the oil-bearing regions should have received as
derivation if 50 per cent derivation had not been
jettisoned few years after crude oil became the chief
revenue earner for Nigeria.
The figures are the outcome of research by Sunday
Vanguard, relying on documents from the Petroleum
Inspectorate, NNPC, CBN Annual Report and
Statement of Account, Nigeria Bureau of Statistics
and the Nigeria Extractive Industry Transparency
Initiative, NEITI.
In the face of biting contemporary economic realities
Nigerians are contending with, there is a consensus
that the different tiers of government - federal, state
and local government councils - have indeed
squandered the nation’s earnings. Even the modest
attempts at saving for the rainy day with the creation
of, first, the Excess Crude Account, ECA -which
suffered mismanagement occasioned by under-hand
spending by the Federal Government that was
supposed to hold the funds in trust - and, thereafter,
the controversial and ineffectual Sovereign Wealth
Fund, SWF - which became a subject of litigation and
high-wire politicking between the Federal
Government and the leadership of the Nigeria
Governors’ Forum, NGF - suffered from the typically
Nigerian insincere approach to economic management.
A breakdown of the earnings shows that between
1958 and 2007 (CBN Annual Report and Statement
of Account, 2008), Nigeria earned N29.8 trillion
from petroleum resources. And between 2008 and
June 2016, the country generated N66.412 trillion.
Between 1958 and 1966, Nigeria earned N140
million from crude oil; 1967 to 1975, the General
Yakubu Gowon got about N11.03 billion; while the
late General Murtala Mohammed/ Olusegun Obasanjo
military regime scooped about N25 billion from
1975-1979.
In like manner, the civilian administration of President
Shehu Shagari earned N36 billion oil money; Buhari,
in his first coming as military head of state
(1984-85), earned about N25 billion; General
Ibrahim Badamasi Babangida, 1985 to 1993, N420
billion; the Ernest Shonekan/Abacha regime
(1993-1998), N1.6 trillion; and General Abdulsalami
Abubakar regime (1998-1999), N350 billion.
With the return to civil rule, Nigeria, under President
Obasanjo realised about N27 trillion from crude oil
between May 1999 and May 2007. His successor,
Umaru Yar’ Adua, reaped about N9 trillion in his
almost three-year rule before he passed on.
The luckiest of the leaders is former President
Goodluck Jonathan, whose administration in five
years, between 2010 and 2015, earned about N51
trillion from petroleum resources. Since he came to
power on May 29, 2015, the President Buhari
administration has been able to earn just about N6
trillion from crude.
However, the huge earnings, since 1958, arguably,
have translated to little or no improvement on the
welfare of the citizenry, especially the people of the
oil-producing areas, whose environment - land, water
and air, has been adversely contaminated and, in many
cases, devastated and polluted.
DETAILS OF EARNINGS AND IMPACT OF
EXPLORATION NEXT WEEK
of Goodluck Ebele Jonathan, earned a total of N51
trillion from petroleum resources. The money is part
of the N96.212trillion the country earned in 58years
of crude oil sales.
Of this princely sum, which accounts for about 80
per cent of the country’s revenue, only N12.258
trillion (just about 14% of total) has been paid to the
oil producing areas as derivation.
The figure is N35.848 trillion less than the N48.106
trillion the oil-bearing regions should have received as
derivation if 50 per cent derivation had not been
jettisoned few years after crude oil became the chief
revenue earner for Nigeria.
The figures are the outcome of research by Sunday
Vanguard, relying on documents from the Petroleum
Inspectorate, NNPC, CBN Annual Report and
Statement of Account, Nigeria Bureau of Statistics
and the Nigeria Extractive Industry Transparency
Initiative, NEITI.
In the face of biting contemporary economic realities
Nigerians are contending with, there is a consensus
that the different tiers of government - federal, state
and local government councils - have indeed
squandered the nation’s earnings. Even the modest
attempts at saving for the rainy day with the creation
of, first, the Excess Crude Account, ECA -which
suffered mismanagement occasioned by under-hand
spending by the Federal Government that was
supposed to hold the funds in trust - and, thereafter,
the controversial and ineffectual Sovereign Wealth
Fund, SWF - which became a subject of litigation and
high-wire politicking between the Federal
Government and the leadership of the Nigeria
Governors’ Forum, NGF - suffered from the typically
Nigerian insincere approach to economic management.
A breakdown of the earnings shows that between
1958 and 2007 (CBN Annual Report and Statement
of Account, 2008), Nigeria earned N29.8 trillion
from petroleum resources. And between 2008 and
June 2016, the country generated N66.412 trillion.
Between 1958 and 1966, Nigeria earned N140
million from crude oil; 1967 to 1975, the General
Yakubu Gowon got about N11.03 billion; while the
late General Murtala Mohammed/ Olusegun Obasanjo
military regime scooped about N25 billion from
1975-1979.
In like manner, the civilian administration of President
Shehu Shagari earned N36 billion oil money; Buhari,
in his first coming as military head of state
(1984-85), earned about N25 billion; General
Ibrahim Badamasi Babangida, 1985 to 1993, N420
billion; the Ernest Shonekan/Abacha regime
(1993-1998), N1.6 trillion; and General Abdulsalami
Abubakar regime (1998-1999), N350 billion.
With the return to civil rule, Nigeria, under President
Obasanjo realised about N27 trillion from crude oil
between May 1999 and May 2007. His successor,
Umaru Yar’ Adua, reaped about N9 trillion in his
almost three-year rule before he passed on.
The luckiest of the leaders is former President
Goodluck Jonathan, whose administration in five
years, between 2010 and 2015, earned about N51
trillion from petroleum resources. Since he came to
power on May 29, 2015, the President Buhari
administration has been able to earn just about N6
trillion from crude.
However, the huge earnings, since 1958, arguably,
have translated to little or no improvement on the
welfare of the citizenry, especially the people of the
oil-producing areas, whose environment - land, water
and air, has been adversely contaminated and, in many
cases, devastated and polluted.
DETAILS OF EARNINGS AND IMPACT OF
EXPLORATION NEXT WEEK