The Nigerian National Petroleum Corporation (NNPC) says the country lost $7bn (N2.1trn) to the activities of militant groups and oil pipeline vandals in the Niger Delta region.
The Group Managing Director of NNPC, Dr Maikanti Baru, said this on Friday in Abuja at the 2016 Fiscal Liquidity Assessment Committee Retreat.
Baru made a presentation on “Global Oil Prices, Militancy and Terrorism and its Impact on Government Revenue in Nigeria’’.
He said the loss occurred between January 2016 till date.
“Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets.
“This implies that 60 per cent of oil production lost is NNPC-FGN equity.
“At an estimated price of 45 dollars per barrel, the total 2016 revenue loss to the Federation Account translates to about 7 billion dollars.
“This is money that the government could have used to achieve major infrastructural milestones.
“This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of National budget; and a new 1,700 kilometre pipeline,’’ Baru said.
Dolapo is a writer and journalist who works with YNaija. He has interests in Christianity, politics and sports.
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