chosen04:
With respect to the recent Budget presentation by the Nigerian Junta Head, Gen. Mohammed Buhari for the 2016 fiscal year, the Coodinator of All Coordinators (COC) and the Spokesman of Indigenous People Of Biafra (IPOB), went on his facebook page to deconstruct Buhari's lies.

Excerpt: . . DECONSTRUCTING BUHARI'S 2016 BUDGET OF LIES & DECEIT----Part-1

According to Retired Major General Muhammadu Buhari:
"2016: Budget Assumptions;
After reviewing the trends in the global oil industry, we have set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016. In 2016, oil related revenues are expected to contribute N820 billion."

IPOB'S DECONSTRUCTION BUHARI'S LIES:

1 barrel of crude oil = $38
Estimated production per day = 2.2 million
Gross earning per day based on $38 per barrel = $83.60 million
Gross earning for entire 2016 (365 days) = $30.514 billion
2016 Gross earning in Naira (assuming $1 = N200) = N6.1028 trillion
But, according to Buhari, Expected revenue from oil = N820 billion
Difference between Gross earning and Expected revenue = N5.2828 trillion
Percentage of Expected revenue to Gross earning = 13.44%
Percentage of the Difference to Gross earning = 86.56%

QUESTIONS BY IPOB:
1) What is the total amount, per barrel, of crude oil that comes to Government after sales, that is, after removal of the cost of operation/production?

2) How did Buhari and his gangs come up with the 2016 Expected revenue of N820 billion when the 2016 Gross earning from oil, based on $38per barrel, will be N6.1028 trillion?

3) Can Buhari and his gangs explain what happened to the difference between the 2016 Gross earning and 2016 Expected revenue which stands at N5.2828 trillion? If N820 billion (13.44% of Gross earning) is the net, then is N5.2828 trillion (86.56% of Gross earning) the cost of production for the 803 million barrels?

4) Is Buhari with his gangs telling his Nigerian people that out of N6.108 trillion, Nigeria will only receive N820 billion? And if so, why? what happens to the remaining N5.2828 trillion or is that the cost of producing 803 million barrels of oil in the course of 365 days? If so, how did that N5.2828 trillion cost come about?

5a) Even if we go by the Expected revenue of N820 billion and crude oil production of 2.2 million per day for 365 days totaling 803 million barrel in 2016, calculations with respect to Expected revenue of N820 billion show a projected revenue of N1,021.17 per barrel or $5.106 per barrel (assuming $1:N200 ratio). So, is the expected net income that comes to Government for 2016 going to be $5.106 per barrel after selling the crude oil at $38 per barrel?

5b) Where is the difference of $32.894 per barrel going to?

5c) Is $32.894 the cost of overheads in producing one barrel of crude oil?

5d) If not, then into who's account, has this $32.894 per barrel gone?

IPOB is asking Buhari and his gangs!!! Source: www.thebiafratimes.co/2015/12/deconstructing-buharis-2016-budget-of.html

chosen04:
With respect to the recent Budget presentation by the Nigerian Junta Head, Gen. Mohammed Buhari for the 2016 fiscal year, the Coodinator of All Coordinators (COC) and the Spokesman of Indigenous People Of Biafra (IPOB), went on his facebook page to deconstruct Buhari's lies.

Excerpt: . . DECONSTRUCTING BUHARI'S 2016 BUDGET OF LIES & DECEIT----Part-1


QUESTIONS BY IPOB:

3) Can Buhari and his gangs explain what happened to the difference between the 2016 Gross earning and 2016 Expected revenue which stands at N5.2828 trillion? If N820 billion (13.44% of Gross earning) is the net, then is N5.2828 trillion (86.56% of Gross earning) the cost of production for the 803 million barrels?

IPOB is asking Buhari and his gangs!!! Source: www.thebiafratimes.co/2015/12/deconstructing-buharis-2016-budget-of.html

chosen04:
With respect to the recent Budget presentation by the Nigerian Junta Head, Gen. Mohammed Buhari for the 2016 fiscal year, the Coodinator of All Coordinators (COC) and the Spokesman of Indigenous People Of Biafra (IPOB), went on his facebook page to deconstruct Buhari's lies.

Excerpt: . . DECONSTRUCTING BUHARI'S 2016 BUDGET OF LIES & DECEIT----Part-1

According to Retired Major General Muhammadu Buhari:
"2016: Budget Assumptions;
After reviewing the trends in the global oil industry, we have set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016. In 2016, oil related revenues are expected to contribute N820 billion."

IPOB'S DECONSTRUCTION BUHARI'S LIES:

1 barrel of crude oil = $38
Estimated production per day = 2.2 million
Gross earning per day based on $38 per barrel = $83.60 million
Gross earning for entire 2016 (365 days) = $30.514 billion
2016 Gross earning in Naira (assuming $1 = N200) = N6.1028 trillion
But, according to Buhari, Expected revenue from oil = N820 billion
Difference between Gross earning and Expected revenue = N5.2828 trillion
Percentage of Expected revenue to Gross earning = 13.44%
Percentage of the Difference to Gross earning = 86.56%

QUESTIONS BY IPOB:
1) What is the total amount, per barrel, of crude oil that comes to Government after sales, that is, after removal of the cost of operation/production?

2) How did Buhari and his gangs come up with the 2016 Expected revenue of N820 billion when the 2016 Gross earning from oil, based on $38per barrel, will be N6.1028 trillion?

3) Can Buhari and his gangs explain what happened to the difference between the 2016 Gross earning and 2016 Expected revenue which stands at N5.2828 trillion? If N820 billion (13.44% of Gross earning) is the net, then is N5.2828 trillion (86.56% of Gross earning) the cost of production for the 803 million barrels?

4) Is Buhari with his gangs telling his Nigerian people that out of N6.108 trillion, Nigeria will only receive N820 billion? And if so, why? what happens to the remaining N5.2828 trillion or is that the cost of producing 803 million barrels of oil in the course of 365 days? If so, how did that N5.2828 trillion cost come about?

5a) Even if we go by the Expected revenue of N820 billion and crude oil production of 2.2 million per day for 365 days totaling 803 million barrel in 2016, calculations with respect to Expected revenue of N820 billion show a projected revenue of N1,021.17 per barrel or $5.106 per barrel (assuming $1:N200 ratio). So, is the expected net income that comes to Government for 2016 going to be $5.106 per barrel after selling the crude oil at $38 per barrel?

5b) Where is the difference of $32.894 per barrel going to?

5c) Is $32.894 the cost of overheads in producing one barrel of crude oil?

5d) If not, then into who's account, has this $32.894 per barrel gone?

IPOB is asking Buhari and his gangs!!! Source: www.thebiafratimes.co/2015/12/deconstructing-buharis-2016-budget-of.html

tuale4u:


The IPOB guy did not understand the budget. let me help him explain. I work in oil company.

1. The Federal government budget is the Budget of the federal government alone. Not the Budget of the country.
Thus from the Nigeria sharing formula, the Federal government takes about 54% of the total oil revenue accruing to the country (Nigeria Federation).

2. Most of the oil production in Nigeria are JV and PSC. Using the JV template, Nigeria (the federation not Federal govt) only owns 60% of the oil produced and the Oil companies owns the remaining 40% of the oil produced per day .

thus the 2.2 million per day, only 0.6*2.2million=1.32million belong to Nigeria (The federation).
thus the 820billion naira is only the 54% for the federal government of the total oil revenue accruing to the government from crude oil sales.

Federal govt share (Potential) = 0.54*1.32million=712,800 per day.

3. The actual average production per day is about 80% of the Potential production
this is because of 20% shutdown for maintenance, unplanned shut downs, pipeline vandalisation etc.

Thus the Federal govt actual average production per day = 0.8*712,800=570,240.

4. Today the average cost of production per barrel in Nigeria is about $18 per barrel.
Actually some onshore field cost are as low as $10 per barrel while some deep offshore and shallow offshore cost are as high as $25 dollar per barrel. Today more than 60% of Nigeria crude are from Offshore. thus using an average cost of $18 per barrel is realistic.

Thus out of the $38 dollar per barrel price of oil, the net revenue to the govt is about $20 per barrel.

thus the expected revenue to federal government from direct sales of Crude oil in 2016 is:

= $20 *199naira/1$ *570240*366*billion/1000000000= 830billion naira


From my estimation the Federal government expected revenue from direct oil sales is about 830billion naira which is very close to 820 billion naira estimated from federal government.


However, this is not all the federal get from having oil in this country. The oil companies pay company tax in hunderds of billion of naira.
But the govt choose to call it company tax because other companies that are not oil companies pay tax too. However the company Tax of oil companies is about 85% of their profit. Thus of the about 1.5 trillion naira expected revenue from Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, about 50% of it are coming from oil companies.

oduastates:
Ignorant folks sending out ignorant folks to protest in front of trigger happy policemen


$38/ barrel
2 million barrels a day ( if they can find buyers)
60% profit share

60% X 2,000,000 X $38 X 365 = WETIN
Remove operational and production expenses.
Assuming production goes on 24/7. No shutdowns and all

Awon didinrin

profosa:


Your analysis is wrong.You need to remove the following cost before determining Federal Government Revenue from Petroleum:

1.Production cost/Profit sharing with the multinationals

2.Share by State Government and Local Government Area of the revenue accruing thereoff.

Bevista:
I'll help cure your ignorance, not for your sake but for the sake of others that may stumble on this junk.

First of all, there is a Joint Venture Contract (JVC) and Profit Sharing Contract (PSC) between the Nigerian Government and the International Oil Companies (IOCs). While there are slight variances in each of the contract, the Nigerian State has an average of about 59% stake in the contracts.

When oil is sold for $38, the Nigerian State only has around 59% of that total figure. Secondly, the amount that comes to the Nigerian State goes into the Federation Account to be shared to all tiers of government. The Federal Government has only around 54% of this amount.

Now let's deconstruct your figures again:
---
(1) Gross earnings for entire 2016 = $30.51bn
(2) Nigerian share in Dollars (59%) = $18.00bn
(3) Budget Naira Exchange Rate = N197/$
(4) Nigerian share in Naira = N3.54tn
(5) 13% to Oil Producing States = N461bn
(6) Balance in Federation Account = N3.083tn
(7) Federal Government Share (54%) = N1.66tn

The figures above are GROSS figures. You'll have to discount the cost of production to arrive at a NET figure for the Federal Government.

profosa:


Your analysis is wrong.You need to remove the following cost before determining Federal Government Revenue from Petroleum:

1.Production cost/Profit sharing with the multinationals

2.Share by State Government and Local Government Area of the revenue accruing thereoff.

chosen04:
........Why not work it using the govt's quoted daily production rate and arrive at the amount of the expected revenue/income that the govt quoted? Am waiting!

chosen04:
So are you telling us that the govt produces at a lost cos that is the only way that you can remove the cost of production from N1.66tn to arrive at an income of = N820b....Try and come up with another line. This one is stale

chosen04:
......FYI, freedom begins to be possible when men are not afraid to die for what they believe in. Biafra land is not like your feudal system where the "haves" and sends the "have-nots" out to do their wish, in Biafraland everyone chooses whatever s/he does thus your claim that someone sent anybody out to protest is dead on arrival.......Why didnt you work out the oil production to arrive at the figure that the clueless govt quoted?

chosen04:
So are you telling us that the govt produces at a lost cos that is the only way that you can remove the cost of production from N1.66tn to arrive at an income of = N820b....Try and come up with another line. This one is stale

tuale4u:


The IPOB guy did not understand the budget. let me help him explain. I work in oil company.

1. The Federal government budget is the Budget of the federal government alone. Not the Budget of the country.
Thus from the Nigeria sharing formula, the Federal government takes about 54% of the total oil revenue accruing to the country (Nigeria Federation).

2. Most of the oil production in Nigeria are JV and PSC. Using the JV template, Nigeria (the federation not Federal govt) only owns 60% of the oil produced and the Oil companies owns the remaining 40% of the oil produced per day .

thus the 2.2 million per day, only 0.6*2.2million=1.32million belong to Nigeria (The federation).
thus the 820billion naira is only the 54% for the federal government of the total oil revenue accruing to the government from crude oil sales.

Federal govt share (Potential) = 0.54*1.32million=712,800 per day.

3. The actual average production per day is about 80% of the Potential production
this is because of 20% shutdown for maintenance, unplanned shut downs, pipeline vandalisation etc.

Thus the Federal govt actual average production per day = 0.8*712,800=570,240.

4. Today the average cost of production per barrel in Nigeria is about $18 per barrel.
Actually some onshore field cost are as low as $10 per barrel while some deep offshore and shallow offshore cost are as high as $25 dollar per barrel. Today more than 60% of Nigeria crude are from Offshore. thus using an average cost of $18 per barrel is realistic.

Thus out of the $38 dollar per barrel price of oil, the net revenue to the govt is about $20 per barrel.

thus the expected revenue to federal government from direct sales of Crude oil in 2016 is:

= $20 *199naira/1$ *570240*366*billion/1000000000= 830billion naira


From my estimation the Federal government expected revenue from direct oil sales is about 830billion naira which is very close to 820 billion naira estimated from federal government.


However, this is not all the federal get from having oil in this country. The oil companies pay company tax in hunderds of billion of naira.
But the govt choose to call it company tax because other companies that are not oil companies pay tax too. However the company Tax of oil companies is about 85% of their profit. Thus of the about 1.5 trillion naira expected revenue from Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, about 50% of it are coming from oil companies.

Bevista:
I'll help cure your ignorance, not for your sake but for the sake of others that may stumble on this junk.

First of all, there is a Joint Venture Contract (JVC) and Profit Sharing Contract (PSC) between the Nigerian Government and the International Oil Companies (IOCs). While there are slight variances in each of the contract, the Nigerian State has an average of about 59% stake in the contracts.

When oil is sold for $38, the Nigerian State only has around 59% of that total figure. Secondly, the amount that comes to the Nigerian State goes into the Federation Account to be shared to all tiers of government. The Federal Government has only around 54% of this amount.

Now let's deconstruct your figures again:
---
(1) Gross earnings for entire 2016 = $30.51bn
(2) Nigerian share in Dollars (59%) = $18.00bn
(3) Budget Naira Exchange Rate = N197/$
(4) Nigerian share in Naira = N3.54tn
(5) 13% to Oil Producing States = N461bn
(6) Balance in Federation Account = N3.083tn
(7) Federal Government Share (54%) = N1.66tn

The figures above are GROSS figures. You'll have to discount the COST OF PRODUCTION to arrive at a NET figure for the Federal Government.

EternalTruths:




You are still spreading this lie I asked you to provide fact using reliable source you couldn't

Dear Nigerians

Look at the lie which I highlighted in blue colour.

Please ask him to provide fact with reliable source that the production cost is $18 and net revenue $20

Because we know that the production cost could be lower than $5 or more than $5 per barrel.


Thank you.

Demdem2:


U are requesting for facts right? Can u also present ur own fact to substantiate the colored part? Why ask for something u can't give? Is it an IPOB way of life?

EternalTruths:
Dear Nigerians

Put aside political difference and be objective to

Look at the highlighted figure in blue colour


Please ask him to explain how he arrived at that figure of $30.15 when Buhari pegged it $38

Thank you

EternalTruths:



As I said

Put aside political difference and be objective

Ask right questions if you want to help your confused hero

Otherwise Tinubu's boys in government will fool Buhari

Bevista:
My dear, you are too much in a haste to find fault and all you end up doing is displaying your ignorance in a public forum. That is what happens to a hate-filled and prejudiced mind.
---
First and foremost, that figure was presented by the OP of this thread. Go back and check the figure and you will see that it says "GROSS EARNINGS" and not price per barrel. That figure is gotten by multiplying price per barrel ($38) x daily production (2.2mbbls/day) x the whole year (365 days) to arrive at an annual gross earning of $30.15bn

EternalTruths:


And you used a figure you are not sure of to defend your point

Demdem2:


What u said is facts. U requested for facts. Now present ur own fact and stop boring us with more lunatic posts.
It's obvious that IPOB spokesman knows nothing about Jvc and PSC. The fool is selling u lies and u lot are gladly picking it up.
Besides, why is he so concerned about the Zoos affairs? Why can't Biafra present their own budgets? Nonsense.