|Dr. Chukwuemeka Iroanya|
"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".
Following the above quote from Gen. Buhari, Dr. Iroanya has these revealing calculations below pertaining to the oil benchmark for the 2016 Budget.
"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".
We may recall that after the presentation of the budget, the Nigerian main Opposition Party - formal ruling Party, People Democratic Party (PDP) immediately rebuked the budget, saying it is FRAUD.
Chinwe Korie (Reporting)