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States To Lose N19bn In Oil, Gas Revenues In 2022 – World Bank

Published

3 years ago

June 22, 2022

The World Bank has said that Nigerian states will likely lose N18.8bn in oil and gas revenues in 2022, as worsening revenue collection at the federation level increases budgetary pressures for the states.

The Washington-based bank said this in its Nigeria Development Update report, titled, ‘The Continuing Urgency of Business Unusual’.

According to the lending bank, the declining revenue from the federation level had put many states in a precarious fiscal position.

The bank warned that many states would be unable to meet up with their expenditures, adding that there was an increase in debt servicing expenditures of States.

The report read in part, “With net oil and gas revenues stagnating, most states will not be able to achieve their intended levels of expenditures in 2022.

“In addition, debt servicing expenditures at the state level are also mounting due to a decline in gross statutory account revenue transfers from the federation account allocation committee, which comprises oil and non-value added tax, non-oil revenues.”

The bank further said that the expected higher VAT collection or improvements in independently generated revenues would not compensate for the lower transfers from the Federation Accounts Allocation Committee in 2022.

The financial institution also warned that there would be a 2.7 per cent decline in FAAC transfers in 2022 when compared to 2021, adding that this decline would push states to borrow more and slash discretionary expenditure.

“Stagnating net oil revenues will significantly affect the fiscal situation at the state level. State governments are projected to collectively receive 2.7 per cent fewer revenues than in 2021, as federal transfers are estimated to decline by 10 per cent against 2020 levels.

“Lower transfers will cause state governments to incur debt or drastically slash discretionary expenditure. Although states receive the majority of VAT revenues, VAT increases would not make up for the loss of net oil revenues.

“As a result, in 2022, the average state in Nigeria will lose N18.8bn in oil and gas revenues, while optimistic projections place average gains from VAT and the electronic money transfer Levy at N7.1bn per state, and average increases in each state’s independent revenues at N6.7bn. As a result, the average state can expect to lose N5bn in revenue in 2022,” the report stated.

The PUNCH reported that the Nigerian National Petroleum Company Limited might deduct over N1tn in the next six months from the Federation Accounts Allocation Committee, following the decision of the Federal Government to continue subsidising Premium Motor Spirit, popularly called petrol.

Figures obtained from the oil firm on its subsidy deductions in 2021 indicated that the amount deducted monthly from FAAC by the NNPC was higher during the periods of higher crude oil prices.

This was also confirmed by economists, who explained that the higher the international price of crude oil, the higher the amount to be deducted by the NNPC from FAAC.

“Of course, the NNPC will spend more on subsidies this year because crude oil price has been increasing and the higher the price of crude, the higher the amount to be spent on subsidy,” the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said.

He added, “In fact, about N2.5tn might be spent on subsidy this year, meaning that about half of that amount could be spent in six months and this means hard times for states because the funds will be deducted from FAAC as usual.

“Some states would struggle to pay salaries, especially states that are heavily dependent on federal allocation. Some may have to lay off some of their work force. Many will struggle to meet their financial obligations as sub-nationals.”

A political economist and former presidential candidate, Prof Pat Utomi, urged states to create an environment for wealth creation rather than depend solely on the federal allocation.

He said, “States must focus more on creating the environment for wealth creation. If you go back to the late 50s and early 60s, most of the developments that took place in Nigeria are from the subnational governments. They collected the revenues, and send 50 per cent of it to the centre but the military ruined all of that.

PUNCH

Headline

Nigerian Man Pleads Guilty In US To $405,000 Romance Scam Against American Women

Published

2 days ago

August 30, 2025

Editor

A40-year-old Nigerian man, Daniel Chima Inweregbu, has pleaded guilty in the United States to charges of conspiracy to commit mail and wire fraud, as well as money laundering, in connection with a romance scam that defrauded American women of more than $405,000.

The United States Attorney’s Office for the Eastern District of Louisiana, in a statement on Thursday, said Inweregbu and his co-conspirators ran the scheme between July 2017 and December 2018, using a fake online persona named “Larry Pham” to lure victims on dating sites and social media targeting US citizens.

Acting U.S. Attorney Michael M. Simpson said that Inweregbu, described as a citizen of Lagos, Nigeria, pleaded guilty on August 21, 2025 before United States District Judge Nanette Jolivette Brown to two of the counts pending against him.

The counts which include conspiracy to commit mail fraud, wire fraud, and using an assumed name to commit a mail fraud scheme, Attorney Simpson said were in violation of Title 18, United States Code, Sections 1341, 1342, 1343 and 1349 (Count 1), and conspiracy to commit money laundering, in violation of Title 18, United States Code, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i), 1957, and 1956(h) (Count 12). INWEREGBU’s plea stemmed from his role in a lengthy romance scam targeting American citizens.

According to court documents, a “romance scam” was a confidence scheme in which the perpetrator feigned romantic intentions towards a victim, gained their affection, and used the victim’s goodwill to commit fraud.

“These fraudulent acts might involve such acts as obtaining access to the victim’s money, bank accounts, credit cards, passports, e-mail accounts, or national identification numbers; convincing the victim to transmit things of value to the perpetrator or his witting or unwitting co-conspirators; or inducing the victim to, unintentionally, commit or participate in the commission of financial fraud against third parties on behalf of the perpetrator,” the statement read.

It added, “Between at least July 1, 2017, and December 16, 2018, Inweregbu, and his co-conspirators, devised and operated a “romance scam” whereby they sought to obtain money and property from multiple American women, including 4 victims, by means of false and fraudulent representations and promises.

“Specifically, Inweregbu and his co-conspirators created profiles on social media and online dating sites using the alias “Larry Pham,” purportedly a middle-aged male, to attract middle-aged female victims.

“The co-conspirators, including Inweregbu, used online messaging platforms and email, to contact victims, introduce themselves, and appeal to victims’ longing for companionship. If the victim responded favorably, Inweregbu and his co-conspirators began to cultivate a romantic relationship that emotionally attached the victims to “Larry Pham.”

“Once the relationship was established, the defendant and his co-conspirators, posing as Larry Pham, requested victims send them money under various scams and ruses to domestic bank accounts they opened and managed. Inweregbu’s scheme resulted in actual and intended losses to the victims of over $405,000.

“Thereafter, Inweregbu and his co-conspirators laundered the funds, by conducting financial transactions using the proceeds of their wire and mail fraud scheme, designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds, by directing the victims’ funds through intermediaries.

“Inweregbu faces up to twenty years in prison, up to three years of supervised release, and up to a fine of $250,000 as to Count 1. He faces up to twenty years in prison, up to three years of supervised release, and up to a fine of $500,000 as to Count 12. He also faces payment of a $100 mandatory special assessment fee per count. Sentencing before Judge Brown has been scheduled for December 4, 2025,” the partly read.

Acting U.S. Attorney Simpson, according to the statement praised the work of the Federal Bureau of Investigation in investigating this matter and expressed appreciation for the great support provided by United States Department of Justice Office of International Affairs and the United States Department of State.

“Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution,” the statement noted.

Headline

UK Bars Over 100 Job Roles From Foreign Recruitment To Curb Migration

Published

2 days ago

August 30, 2025

Editor

The British government has unveiled major immigration reforms, blocking foreign workers from filling more than 100 job categories in a move aimed at reducing net migration.

The Home Office, in a statement posted on X Saturday morning, said the decision was geared towards creating more opportunities for local citizens while restructuring the visa regime.

“Cutting net migration means getting the fundamentals right.

“More than 100 occupations are no longer eligible for overseas recruitment – opening up more jobs for British workers. A fairer, skills-focused system is now taking shape,” the Home Office stated.

This policy marks the latest immigration clampdown under Prime Minister Sir Keir Starmer, who assumed office on July 5, 2024, after Labour’s sweeping election win that ended Rishi Sunak’s tenure.

However, the measure has drawn criticism, with opponents warning it could deepen staffing shortages in critical sectors such as healthcare and social services.

The Home Office has not yet published the full list of restricted occupations.

Headline

PM Killed In Israeli Strike, Say Yemen’s Huthis

Published

2 days ago

August 30, 2025

Editor

The prime minister of Yemen’s Huthis was killed in an Israeli airstrike along with other officials earlier this week, the Iran-backed rebels announced on Saturday.

Ahmed Ghaleb Nasser Al-Rahawi, who was appointed last year, is the most senior official known to have been killed in a series of Israeli strikes during the war in Gaza.

“We announce the martyrdom of the fighter Ahmed Ghaleb Nasser Al-Rahawi… along with several of his ministerial colleagues, as they were targeted by the treacherous Israeli criminal enemy,” a Huthi statement said.

“Others among their companions were injured with moderate to serious wounds and are receiving medical care since Thursday afternoon,” it added.

The Israeli military struck in the area of Sanaa, the Huthi-held capital, on Thursday. The Huthis, claiming solidarity with the Palestinians, have frequently fired missiles and drones at Israel during the Gaza war.

Israeli forces “struck a Huthi terrorist regime military target”, the Israeli military said at the time.

The Huthis have also targeted shipping in the Red Sea and the Gulf of Aden, which they claim is linked to Israel during the Gaza war.

The rebel group controls large parts of Yemen, which has been gripped by war since 2014, and is part of Iran’s anti-Israel alliance alongside militant groups across much of the Middle East.