Tuesday, February 9, 2010

Nigeria's oil reserve to dry up in 2040

The oil reserves in the Niger Delta currently in the region of 30 billion barrels will dry and disappear by the year 2040.

Activities of militant groups in the region, ineptitude leadership and rapid depletion of ore, a major component for the exploration are contributory factors that may see the end of Nigeria's oil.

Regulatory and monitoring organs in the country including the Nigeria National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR) and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) are concerned about the development.

A source in one of the agencies confirms that some of the agencies especially NNPC and RMAFC have undertaken visitations and mounted various campaigns on need for the diversification of the economy to other sectors and on the necessity for passage of Petroleum Industry Bill (PIB) into law.

The RMAFC had toured some states to verify existing and abandoned oil wells and other prospective areas for exploration. It also provided each state in the federation with lists of abundant mineral and natural resources in its location which could be tapped for more revenue to their Internally Generated Revenue and the Federation Accounts.

Minerals and hydrocarbon deposits have life-span and can be negatively affected if there are fewer activities to extend the life indices through intensive exploration to augment the resource base, Economic Confidential reports.

Members of the Federal Account Allocation Committee (FAAC), which comprises commissioners of finance, accountants general of states, NNPC, Customs and Federal Inland Revenue Service are being told on the need for new investment and diversifications of the economy because they would soon run out of oil for export and local consumption.

The campaigns have also gone to Governors and federal legislators on the need for early passage of PIB because the future of Nigeria's oil, according to the campaigners, depends largely on new oil bill that would promote continued investment in new oils and security of facilities in the Niger Delta region.

At another forum in Abuja recently, a General Manager, Planning, National Petroleum Investment Management Services (NAPIMS) Victor Briggs stated that that Nigeria is not investing in new oil discoveries whereby all the revenues from oil goes to the Federation Account directly without reinvesting into oil fields.

The disbursement figures made in January 2010 from the Federation Account shows that while Bayelsa and Edo States received the sum of N4.29billion and N3.48billion respectively the non-oil states of Lagos and Kano States received N9.16billion and N6.49billion respectively.

Daily Trust

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