FG targets N800bn oil revenue increase in three years

crude oil prices

The Federal Government is targeting an increase of N800bn in oil revenue in the next three years, according to the Economic Recovery and Growth Plan ( ERGP).

The projection is based on an increase in the crude oil production volume from 2.2 million barrels per day to about 2.5 million barrels per day.

This is expected to be achieved as a result of the restoration of peace in the Niger Delta following series of consultation by the Acting President, Prof. Yemi Osinbajo, with stakeholders in the region.

Osinbajo, had recently as part of efforts to douse the tension in the region, visited some states in the Niger Delta region.

While the 2017 budget proposal pegged the crude oil production volume at 2.2 million barrels per day, the disruption of oil installations in the Niger Delta region has made it difficult to achieve the production volume.

Oil production, according to government figures, is between 1.6 million barrels per day and 1.8 million barrels per day.

But the ERGP document explained that the efforts of the government in restoring peace to the Niger Delta region would result in an increase in oil revenue by 176 per cent in 2017 and then an average of 13 per cent every year until 2020.

It stated, “The Federal Government’s ongoing dialogue with militants in the Niger Delta will ensure that peace returns to the Niger Delta, and there will be an increase in daily crude oil production. Oil revenues are expected to grow by 176 per cent in 2017, and then an average of 13 per cent per year until 2020.”