Dear Professor Osinbajo, Re: Crude revenue 2010-2015, your Arithmetic is weak. By Ettu Mohammed

Dear Professor Osinbajo GCON,
Vice President of Nigeria,
Abuja Nigeria.

12/12/2018

Re: President Goodluck Nigeria total earnings from sale of crude oil was $383 billion from May 2010-May 2015.

Sir, I think you there is a mix-up in your lines here. You must have assumed revenue is the same as earnings.

Sir, Nigeria never earned $383 billion from sale of crude oil during the Goodluck Ebele Jonathan Era, in fact Nigeria as a country has not earned a total of $383 billion from the sale oil in the last 19 years.

Sir, if you said The total revenue accrued to Nigeria and her partners is $383 billion that will be factual.

Sir, Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise.

Sir, Earnings are the amount of profit that a company produces during a specific period.

The total revenue accrued to Nigeria is a inclusive of the share of all the major players in the oil sector. When the sharing formula and all necessary deductions are applied we will be left with a very little fraction of what you quoted sir.

This shows clearly sale of crude oil cannot rescue Nigeria. This is a clear pointer that Nigeria has to look inwards for other source of revenue.

Sir between May 2010 and May 2015 the USD was averaging between N150,N155, N166 to $1 and climaxed at N218 by February 2015.

It means the total crude oil lifting value without any deductions in Nigeria Naira is equivalent to N59.4 trillion in 5 years which means the total revenue from oil annually was N11.9 trillion using N155 to $1 which was CBN official rate

As at today USD is averaging N305-$1, it rose from N218-N288- N400-N500 before we got to N360 to $1 but the CBN retained it’s official rate to $1-N305.
The parallel market sells for N360+ for $1

According to the record of NNPC, the total revenue from crude oil accrued to Nigeria and her partners between June 2015 and July 2018 which is a 3 year period is $113.2 billion.

It means the total revenue accrued to Nigeria and her partners in the last three years is N34.6trillion using N305 to $1 official rates.(June 2015-June 2018)

This means Nigeria total revenue from sale of crude oil annually from June 2015 till date is N11.5 trillion.

Sir, between May 2011 till date Nigeria total revenue from sale of crude oil when converted to Nigeria Naira is at par.

Sir, I think you didn’t take not of the fact that we will have more Nigerian Naira against fewer dollar all thanks to devaluation, the same mistake you made when you spoke on Nigeria’s debt profile.

Sir I think it is necessary to put the record straight since we are in the electioneering season wrong information will be pushed to the public space by politicians all in a bid to sway the general Populace.

Regards,

Ettu Mohammed.

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