• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Latest Suit Against FG Exposes Major Concerns In Nigeria’s Sharing Formula With IOC’s

Chacha Wabara by Chacha Wabara
May 2, 2017
in Business News
Federal Government Will Reduce Contracting Cycle In Oil industry To Six Months
Share on FacebookShare on TwitterShare on Linkedin

Nairametrics| “Water here, water there, yet no water”. At this point, that popular saying could be applicable to the Nigerian situation. The economic crisis in the country has led to politicians emphasizing the need for the country and its citizens in particular to maximize the resources available to them. However, that advice seems to be applicable to the citizens, as more evidence has come up to show how government has failed to utilize resources available to it.

The latest example is the suit filed by the Rivers, Bayelsa and Akwa-Ibom states against the FG at the Supreme Court over the government’s failure to review the sharing formula, when the price of crude oil exceeded $20 per barrel from August 2003 as provided by law. According to the plaintiffs, this has resulted in the loss of at least N500 trillion Naira over a period of 15 years.

The suit, All Africa reports, is based on the Deep Offshore and Inland Basin Production Sharing Contracts Act (DOA) stipulated in Section 16(1) which stipulated that “any time the price of crude oil exceeds US$20/bbl, the share of the defendant (FG) shall be adjusted upwards under the Production Sharing Contracts to favour the Defendant.”

RelatedStories

Nigerian Ehis Akhimie convicted in US for $6 million fraud, faces up to 20 years in prison 

Nigerian Ehis Akhimie convicted in US for $6 million fraud, faces up to 20 years in prison 

July 3, 2025
Nigerian Custom service

Tin Can Customs Command generates N747 billion in H1 2025, up 29.85% from last year

July 3, 2025

However, the plaintiffs argue that since 1999, when crude oil prices have exceeded $20 per barrel, the FG has ignored Section 16(1) leaving its share in the contracts as it was. “At the least price of US100/bbl, there was earnings of US$210,000,000 per day which translates US$76,650,000,000 (Seventy-six billion, six hundred and fifty million US dollars) per annum. Using the total earning per annum as a multiplicand by 15 years from 1999-2015, a total sale earning of US$1,149,750,000,000 (One trillion, one hundred and forty-nine billion, seven hundred and fifty million US dollars) was earned between the defendant and its Production Sharing Partners in the Production Sharing Contracts for the period.” They claim.

The contracts under contention are those between the FG and Nigeria Agip Energy (NAE), Shell Nigeria Exploration and Production Company Limited (SNEPCO), Exxon-Mobil and Statoil. If these claims are true, then it means that all of Nigeria’s present deficit, including that of the 2017 budget could have been settled by enacting the law as stipulated. What will continue to baffle many is why was it not activated? Rather than look for ways of stopping obvious leakages, FG seems more intent on taxing Nigerians. Hence, there is little where there is so much.


Follow us for Breaking News and Market Intelligence.
Chacha Wabara

Chacha Wabara

Chacha Wabara-Ogbobine is a Legal practitioner with over 9years post call experience. A research Consultant, professional writer and a blogger at heart,owner of four thriving websites with well over 10years of experience. Totally in love with keeping fit and coaching weight loss enthusiasts. I love my quiet time, being with my kids, watching TV series for hours on end.

Related Posts

Nigerian Ehis Akhimie convicted in US for $6 million fraud, faces up to 20 years in prison 
Business News

Nigerian Ehis Akhimie convicted in US for $6 million fraud, faces up to 20 years in prison 

July 3, 2025
Nigerian Custom service
Business News

Tin Can Customs Command generates N747 billion in H1 2025, up 29.85% from last year

July 3, 2025
9mobile, MTN to roll out National Roaming nationwide before end of July 
Corporate deals

9mobile, MTN to roll out National Roaming nationwide before end of July 

July 3, 2025
United States extends period for work permits for non-citizens
"Japa"

U.S. opens H-2B visa applications for 2026 non-agricultural jobs, sets July 5 deadline

July 3, 2025
US says Nigerians overstaying their visas face permanent ban, criminal prosecution
Business News

U.S. Embassy and Consulate in Nigeria to close on July 4 for Independence Day observance 

July 3, 2025
Federal High Court, REA
Legal & Regulations

Gov. Alex Otti’s N50 billion Suit: Facebook user accused of defamation, court accepts key exhibits 

July 3, 2025
Next Post
[Corporate Action] Vitafoam Records 31% Drop In Profits to N521m In 9months

ALERT: Vitafoam Declare N205 Million Profit (2017 H1)

Comments 3

  1. Blesxzoh says:
    May 2, 2017 at 1:19 pm

    I’m a regular reader of your articles. And I love Nairametrics, the most informative website I know. Just an observation. Can you please check this caption to one of your most recent posts: “Could Nigeria Could be Trillions of Naira to Its Sharing Formula?” I pretty much don’t understand what the caption means, read it severally but can’t figure it out.

    Cheers,
    Blesxzoh

    Reply
    • Nairametrics says:
      May 2, 2017 at 2:10 pm

      Thanks for the observation. The error has been fixed.

      Reply
      • Anodebenze says:
        May 3, 2017 at 5:05 pm

        When is the staff of nairametric, do the honourable thing and the thing that is done universal ?WHEN IS THE BLACK MARKET AS A MEASURING DATA IN NIGERIA,the cbn control about 80 % of the forex,commercial banks maintained about 20 % to 40 %.if the cbn allows them.
        Why not nairametric uses original term like African powerful term bullish can be lionize for bullish or bearish for tortoise.bulls happens when the market is moving,bear is when the market is slowing down. a lion is courageous and fearless animal.while a tortoise a very slow animal,which are native animal to Africa.the choice is yours.Adios

        Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Nigerian Ehis Akhimie convicted in US for $6 million fraud, faces up to 20 years in prison 
  • Tin Can Customs Command generates N747 billion in H1 2025, up 29.85% from last year
  • 9mobile, MTN to roll out National Roaming nationwide before end of July 

Follow us on social media:

Recent News

Nigerian Ehis Akhimie convicted in US for $6 million fraud, faces up to 20 years in prison 

Nigerian Ehis Akhimie convicted in US for $6 million fraud, faces up to 20 years in prison 

July 3, 2025
Nigerian Custom service

Tin Can Customs Command generates N747 billion in H1 2025, up 29.85% from last year

July 3, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics