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

Published

4 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

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Russia, China Afraid Of US Under My Administration — Trump

Published

20 hours ago

January 8, 2026

Editor

United States President, Donald Trump, has said Russia and China fear the United States because of the strength of his administration, arguing that American global influence is driven primarily by its military power and leadership.

Trump, in a post on Truth Social on Wednesday stated that rival powers would not take NATO seriously without the United States, claiming the alliance lacks deterrent force in the absence of American involvement.

He expressed doubts about whether NATO members would come to the aid of the US in a real crisis, despite Washington’s continued commitment to the alliance.

The president credited his leadership with rebuilding the US military during his first term and sustaining its strength, describing this as the key reason adversaries show respect and caution toward the country.

He maintained that America’s military dominance has played a central role in preserving global stability and saving lives.

Trump also argued that his administration forced NATO members to increase defence spending, saying many allies had previously failed to meet financial commitments while relying heavily on the US.

He added that his actions helped prevent further escalation in Eastern Europe and contributed to the resolution of multiple conflicts.

According to Trump, the United States remains the only nation that commands genuine fear and respect from both Russia and China, a position he attributed to his administration’s approach to defence, diplomacy, and global leadership.

“He wrote partly, “The only Nation that China and Russia fear and respect is the DJT REBUILT U.S.A. MAKE AMERICA GREAT AGAIN!!! President DJT.”

Headline

Trump To Withdraw US From 66 UN, International Organisations

Published

21 hours ago

January 8, 2026

Editor

United States President, Donald Trump, has announced plans to withdraw the US from 66 United Nations and international organisations, including key global bodies focused on climate change, peace and democracy.

The decision was disclosed in a presidential memorandum released by the White House on Wednesday evening, following a review of which “organizations, conventions, and treaties are contrary to the interests of the United States.”

According to Trump, the move will see the US end its participation in the affected organisations and cut all related funding.

A list shared by the White House showed that 35 of the organisations are non-UN bodies, including the Intergovernmental Panel on Climate Change (IPCC), the International Institute for Democracy and Electoral Assistance, and the International Union for Conservation of Nature.

Although listed as a non-UN body by the White House, the IPCC is a United Nations organisation that brings together leading scientists to assess climate change evidence and provide periodic reports to guide political leaders.

The memorandum also announced the US withdrawal from 31 UN entities, including the UN Framework Convention on Climate Change (UNFCCC), the UN Democracy Fund, and the UN Population Fund (UNFPA), which focuses on maternal and child health.

Several of the targeted UN bodies are involved in protecting vulnerable groups during armed conflicts, including the UN Office of the Special Representative of the Secretary-General for Children and Armed Conflict.

Reacting to the announcement, UN spokesperson Stephane Dujarric said in a note to correspondents on Wednesday evening that the organisation expected to issue a response by Thursday morning.

Despite repeatedly stating his desire to limit US involvement in UN forums, Trump has continued to exert influence on international decision-making.

In October last year, he threatened to impose sanctions on diplomats who formally adopted a levy on polluting shipping fuels that had already been agreed to at an earlier meeting, a move that stalled the deal for 12 months.

The Trump administration also sanctioned UN special rapporteur Francesca Albanese after she released a report detailing the role of international and US companies in Israel’s genocidal war on Gaza.

During his first term in 2017, Trump similarly threatened to cut aid to countries that supported a draft UN resolution condemning the US decision to recognise Jerusalem as Israel’s capital.

As a permanent member of the UN Security Council, the US wields significant influence at the United Nations, including veto power, which it has repeatedly used to block efforts to end Israel’s war on Gaza before later mediating a ceasefire.

(Aljazeera)

Headline

UK Supported US Mission To Seize Russian-flagged Oil Tanker – Defense Ministry

Published

1 day ago

January 7, 2026

Editor

The British Ministry of Defence said on Wednesday that it provided support to the United States in its operation to seize a Russian-flagged oil tanker in the North Atlantic.

US seized the tanker, which was being shadowed by a Russian submarine on Wednesday, after pursuing it for more than two weeks across the Atlantic as part of Washington’s efforts to block Venezuelan oil exports.

According to Britain, its armed forces gave pre-planned operational support, including basing following a US request for assistance.

The UK also said a military vessel provided support for the US forces pursuing the tanker, and the Royal Air Force provided surveillance support from the air.

Defence Secretary John Healey stated that the operation targeted a vessel with a nefarious history linked to Russian and Iranian sanctions evasion networks.

“This action formed part of global efforts to crack down on sanctions busting,” he said in a statement.

According to him, the US was Britain’s closest defence and security partner.

“The depth of our defence relationship with the US is an essential part of our security, and today’s seamlessly executed operation shows just how well this works in practice,” he added.

The British government said that the Bella-1 tanker, now renamed Marinera, is sanctioned by the US under its counter-Iran sanctions,

The MoD statement said the support was provided in full compliance with international law.