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Nigeria earns $741.5bn, ₦635.3bn from mineral resources in 21 years

Published

1 year ago

August 17, 2023

The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the country earned $741.5bn and N635.3bn from the oil/gas and solid minerals sectors respectively in a period of about 21 years.

The NEITI, through its Executive Secretary, Ogbonnaya Orji, announced on Wednesday at a stakeholder meeting that the earnings were between 1999 and 2020.

“These earnings were between the years 1999-2020 (oil and gas) and 2006-2020 (solid minerals sector earnings)”, it said.

In addition, NEITI reports have disclosed that Nigeria lost over 619.7 million barrels of crude oil valued at $46.16bn or N16.25tn from 2009 to 2020 from theft and sabotage.

Nigerian oil was discovered in 1956, and the country’s production commenced in the late 1950s. The oil industry has grown steadily to become a global behemoth, with a few exceptions owing to economic conditions.

Nigeria’s revenue from its mineral resources has been affected lately by industrial scale of oil theft in Niger Delta and increasing cases of illegal mining in some other parts of the country, notably in Zamfara state.

“So far, NEIT! has conducted a total of 13 cycles of reconciliatory reports in the oil and gas sector and 11 cycles of reports in the solid minerals sector. These reports have disclosed a total revenue earnings to the government of $741.48bn from the oil and gas sector and N635.3bn from the solid minerals sector.

“This amounts to losing over 140,000 barrels of crude valued at $10.7m daily. Furthermore, NEITI has reported on subsidy payments from the years 2005 to 2021 and its huge negative consequences to the nation”, NEITI said.

Orji stated that in these reports, it was revealed that Nigeria had spent $74.39bn, “which translates to N13.7tn. By the above figures, Nigeria spent an average of N805.7bn annually, N67.1bn monthly or N2.2bn daily”.

Mineral fuels, oils, and distillation products account for over 89 percent of Nigeria’s total export value. The export of these resources was over 42 billion dollars in 2021. Nigeria is the second-largest oil reservoir in the world and on the continent of Africa.

Related Topics:Featured Nigeria Oil and Gas

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IMF mission concludes 4th loan program assessment in Egypt

Published

1 day ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.