The Nigerian National Petroleum Corporation, NNPC, said from January 2016 till date, government lost $7 billion (N2.1 trillion) to the activities of militancy groups and oil pipeline vandals in the Niger Delta region.
The Group Managing Director of NNPC, Maikanti Baru, said this on Friday in Abuja at the 2016 Fiscal Liquidity Assessment Committee Retreat.
Mr. Baru made a presentation on “Global Oil Prices, Militancy and Terrorism and its Impact on Government Revenue in Nigeria’’.
He said that apart from security challenges in the region, politics, judiciary, oil prices and production cost continued to impact negatively on the oil industry.
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 per barrel, the total 2016 revenue loss to the Federation Account translates to about $7 billion .
This is money that the government could have used to achieve major infrastructural milestones.