The annual investments gap in Nigeria’s power industry has hit N2 trillion (US$10 billion). Economic analysts at the First Bank Nigeria Capital (FBN Capital) who gave this hint in a report released on Monday maintained that the investment gap is expected to be met by the Federal Government, private investors (domestic and foreign) and the donor community.
In the report entitled: “Time for the fleshing out of policies,” the analysts declared that it was obvious that the Federal Government has very limited room to tackle the country’s infrastructural deficit.
“The industry estimates put the annual financing gap for the power industry alone at N2 trillion (US$10 billion), which would be met by the FGN, private investors (domestic and foreign) and the donor community,” the report read. According to the analysts, data from the Central Bank of Nigeria (FBN), “highlight the impact of declining oil revenues on Federal Government’s aspirations for capital expenditure.
Its outlays plummeted to N32 billion in Q1, 2015 and a derisory N6 billion in the second quarter and so far below the payout on statutory transfers to bodies such as the National Judicial Council (NJC) and the National Assembly.” The Nigerian National Petroleum Corporation (NNPC) had declared at the weekend that its total export crude oil and gas receipt for the period of January – August 2015 is $3.420 billion, a sharp decline of over 67 per cent from September, 2014, when the receipt was at its peak, to July, 2015 “with dire consequences to the federation.”
The corporation revealed this in its monthly publication of Financial and Operational Report, which it commenced at the weekend, maintaining that a total of $607.8 million has been paid so far to the Federation Accounts Allocation Committee (FAAC) in the year 2015 from oil and gas exports as dollar proceeds. Group Managing Director, NNPC, Dr. Ibe Kachikwu, had in August, promised to publish monthly, a Financial and Operational Report, in a bid to guarantee new era of transparency in NNPC.
“A further breakdown indicates that the total export crude oil & gas receipt for the period of January – August 2015 is $3.420 billion. Of the total receipts, the sum of $0.61 billion was remitted to Federation Account as dollar proceeds, while the balance of $2.815 billion was used to fund the JV Cash Call for the period,” the corporation said in a statement. “The report notes that the receipts witnessed a sharp decline of more than 67 per cent from September, 2014, when the receipt was at its peak, to July, 2015, with dire consequences to the federation. “The NNPC informed that the continued decline in oil price led to insufficient cash available to meet monthly JV Cash Calls obligations of about $615.8 million as appropriated by the National Assembly.
To mitigate this effect, NNPC was compelled to sweep all the export receipt to JV Cash Call funding, implying a zero dollar proceed remittance to the Federation Account since the month of April 2015,” the statement signed by Group General Manager, Group Public Affairs division, Ohi Alegbe, showed.
The sum of N723.82 billion for Domestic Crude oil and gas sales proceeds has been paid to the federation account from January to August 2015 as Naira proceeds. The publication, which is available on the Corporation’s official website, provides an overview of NNPC’s operations across the oil and gas value chain (upstream, midstream & downstream) as well as NNPC’s agency function on behalf of Government of the Federation from the period January to August 2015.
Specifically, the report provides detailed and unprecedented statistical insight into crucial aspects of the Corporation’s activities ranging from national crude oil & natural gas production, lifting and utilisation; refineries plants operations; and petroleum product supply and distribution to NNPC budget performance report and federation crude oil & gas revenue. Illustrated with tables, graphs and charts, the report highlights aspects of NNPC’s operations that were once described as ‘opaque.’ The Federal Government has estimated that about $18 billion from various stakeholders and interested parties is expected to be invested in power sector
Its outlays plummeted to N32 billion in Q1, 2015 and a derisory N6 billion in the second quarter and so far below the payout on statutory transfers to bodies such as the National Judicial Council (NJC) and the National Assembly.” The Nigerian National Petroleum Corporation (NNPC) had declared at the weekend that its total export crude oil and gas receipt for the period of January – August 2015 is $3.420 billion, a sharp decline of over 67 per cent from September, 2014, when the receipt was at its peak, to July, 2015 “with dire consequences to the federation.”
The corporation revealed this in its monthly publication of Financial and Operational Report, which it commenced at the weekend, maintaining that a total of $607.8 million has been paid so far to the Federation Accounts Allocation Committee (FAAC) in the year 2015 from oil and gas exports as dollar proceeds. Group Managing Director, NNPC, Dr. Ibe Kachikwu, had in August, promised to publish monthly, a Financial and Operational Report, in a bid to guarantee new era of transparency in NNPC.
To mitigate this effect, NNPC was compelled to sweep all the export receipt to JV Cash Call funding, implying a zero dollar proceed remittance to the Federation Account since the month of April 2015,” the statement signed by Group General Manager, Group Public Affairs division, Ohi Alegbe, showed.
The sum of N723.82 billion for Domestic Crude oil and gas sales proceeds has been paid to the federation account from January to August 2015 as Naira proceeds. The publication, which is available on the Corporation’s official website, provides an overview of NNPC’s operations across the oil and gas value chain (upstream, midstream & downstream) as well as NNPC’s agency function on behalf of Government of the Federation from the period January to August 2015.
Specifically, the report provides detailed and unprecedented statistical insight into crucial aspects of the Corporation’s activities ranging from national crude oil & natural gas production, lifting and utilisation; refineries plants operations; and petroleum product supply and distribution to NNPC budget performance report and federation crude oil & gas revenue. Illustrated with tables, graphs and charts, the report highlights aspects of NNPC’s operations that were once described as ‘opaque.’ The Federal Government has estimated that about $18 billion from various stakeholders and interested parties is expected to be invested in power sector
