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

Published

3 years ago

June 22, 2022

Editor

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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US Commits $32.5m To Support Food Security In Nigeria

Published

8 hours ago

September 3, 2025

Editor

The United States Government has committed $32.5m to the United Nations World Food Programme to support food and nutrition assistance for hundreds of thousands of people affected by conflict in Nigeria.

According to a statement released by the US Embassy in Abuja on Wednesday, the funding will enable WFP Nigeria to reach approximately 764,205 vulnerable individuals in the Northeast and Northwest regions of the country.

These areas have been severely impacted by ongoing insecurity and displacement, with millions struggling to access necessities.

The assistance package includes general food distributions as well as targeted nutritional support.

Among the beneficiaries are 41,569 pregnant and breastfeeding women and girls, and 43,235 children who will receive specialised nutrition support through electronic food vouchers, according to the statement.

“World Food Program Nigeria, with US Government’s contribution of $32.5m, will provide food assistance and nutrition support to internally displaced persons across conflict-affected areas.

“With the US Government’s donation, the World Food Programme Nigeria will provide food and nutrition assistance to 764,205 beneficiaries across Northeast and Northwest Nigeria.

“This includes complementary nutrition top-ups for 41,569 pregnant and breastfeeding women and girls and 43,235 children through electronic food vouchers,” the statement read.

On December 18, 2024, PUNCH Online reported that the United States Agency for International Development has denounced recent media reports misrepresenting US agricultural initiatives in Nigeria, stating that its programmes operate transparently and align with the country’s laws.

In a statement issued by the US Mission in Nigeria, USAID highlighted the significant achievements of its agricultural collaboration with Nigeria, which it claimed has supported over five million Nigerian farmers since 2019.

The agency maintained it has boosted food production and strengthened rural economies across the country through its efforts.

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UK To Ban Sale Of Energy Drinks To Children

Published

10 hours ago

September 3, 2025

Editor

The United Kingdom government has unveiled plans to prohibit the sale of high-caffeine energy drinks, including popular brands such as Red Bull, to anyone under the age of 16 in England.

Health Secretary, Wes Streeting, announcing the move on Wednesday, said the step was aimed at safeguarding young people’s wellbeing.

“By stopping children from buying these drinks, we’re laying the groundwork for healthier and happier generations,” he explained.

Government figures suggest that up to one in three teenagers aged 13 to 16 regularly consume energy drinks, many of which contain more caffeine than two cups of coffee.

While most major supermarkets already enforce a voluntary restriction, the new policy would make it a nationwide rule.

“How can we expect pupils to thrive in the classroom if they’re running on the equivalent of a double espresso every day?” Streeting asked, stressing that the government was responding to concerns raised by parents and teachers. “We’re determined to address the root causes of poor health and educational struggles head-on.”

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Indian Man Gets Death Sentence For Burning Wife Alive Over Skin Colour

Published

10 hours ago

September 3, 2025

Editor

A court in India recently sentenced a man to death for setting his wife, Lakshmi, ablaze alive due to her dark skin colour. This harsh punishment reflects the gravity of the crime and its impact on society.

As reported by BBC on Wednesday, the attack on Lakshmi took place on the night of 24 June 2017, the murder dates eight years back, and the judgment, delivered at the weekend, has made headlines in a country where public obsession with colourism is well documented.

The attack on Lakshmi took place on the night of 24 June 2017, according to the court order seen by the BBC.

Before her death, Lakshmi revealed that her husband, Kishandas, frequently mocked her for being dark-skinned, calling her “kali” and body-shaming her since their marriage in 2016.

On the night of her attack, Kishandas brought a plastic bottle containing a brown liquid, purportedly a skin-lightening medicine.

According to Lakshmi’s statements, he applied the liquid on her body, and when she complained about a strong acid-like smell, he set her on fire with an incense stick.

Adding to the cruelty, Kishandas poured the remaining liquid on her while she was burning and then fled. Her family rushed her to the hospital, but she later died from her injuries.

The judge, Rahul Choudhary, condemned the act as not only a murder but “a crime against humanity,” stressing that Kishandas “broke her trust” and showed “excessive cruelty in throwing the remaining liquid on her” while she burned.

He described the case as fitting the “rarest of the rare” category, saying, “It will not be an exaggeration to say that this heart-rending brutal crime was not just against Lakshmi, but it’s a crime against humanity.”

He added, “It’s a crime that shocks the conscience of humanity, which cannot even be imagined in a healthy and civilised society.”

The public prosecutor called the verdict “historic,” hoping it would serve as “a lesson for others in society.”

He said, “A young woman in her early 20s was brutally murdered. She was someone’s sister, someone’s daughter; there were people who loved her. If we don’t save our daughters, then who would?”

This tragic story highlights the deep-rooted issue of colourism, where darker-skinned women face widespread discrimination and abuse.

Despite ongoing campaigns to challenge these prejudices, the preference for fair skin remains strongly embedded in many areas of life, continuing to cause immense harm. Until societal attitudes change, such heartbreaking incidents are likely to persist.