There are indications that the Federal Government’s oil revenue dropped by more than 297.6 per cent between the second quarter of 2010 and fourth quarter of 2017, as a result of developments in the international market. Investigations by Vanguard showed that the situation was fuelled by some factors, including the supply of United States of America’s Shale Oil, some Nations’ ability to find alternatives to Oil and negative speculation before Organisation of Petroleum Exporting Countries, OPEC, and non-OPEC members intervened to withdraw excess oil from the market.
Consequently, the President Muhammadu Buhari-led administration, which took over from former President Goodluck Jonathan, earned less from oil during his first three years. The compilation of the Central Bank of Nigeria, CBN, reports by Vanguard showed that a total of N37.465 Trillion was earned as oil revenue during the six years under review.
A breakdown showed that N28.042 Trillion was generated during the first three years (second quarter of 2010 – fourth quarter of 2013), when Dr.Goodluck Jonathan was the President and Commander-in-Chief of the Armed Forces. But the amount generated from oil dropped to N9.423 Trillion, indicating a reduction of more than 297.6 per cent in the first three years (second quarter 2015 to fourth quarter 2017), of President Buhari’s administration as the price of oil dropped from over $100 to $40, before the recent leap to $78 per barrel.
A source in the Ministry said there were many things the Government could have done, but had to prioritise because of limited funds, coming mainly from Oil. It was stated that: ‘’The 2018 Budget is designed to Consolidate on the achievements of the 2016 Budget of Change & the 2017 Budget of Recovery & Growth, and advance delivery of the goals of Nigeria’s Economic Recovery and Growth Plan (ERGP) 2017 – 2020.”
In 2010 Nigeria’s budget was N4.6 Trillion based on the oil reference price of $67 per barrel and 2.35 million daily output. In 2011 and 2012, the budget rose marginally to N4.485 Trillion and N4.749 Trillion based on $75pb/2.3mbpd and $70pb/2.3mbpd respectively. Also, in 2013 and 2014, the budget rose to N4.99 Trillion and N4.962 Trillion, based on $79pb/2.53mbpd and $77.5 per barrel/2.526 mbpd respectively. In 2015 and 2016, the budget stood at N4.5 Trillion and N6.06 Trillion, based on $53 per barrel/ 2.278mbpd and $38 per barrel/2.2mbpd respectively. But in 2017, the Nation’s budget stood at N7.44 trillion based on $44.5 per barrel/2.2mbpd.
However, experts who stressed the need for increased budgeting and investment in non-oil sector, called for the rapid diversification of the nation’s economy. Director-General, Lagos Chamber of Commerce and Industry, LCCI, Mr. Muda Yusuf, said in a telephone interview that the government had made progress in some sectors.