Thread by @kanmyexcellent

Let make illustrations how ECA work:
Nig Budgeted 2.3m Oil Barrel Per Day
Benchmark Price at $57
Projected Oil Revenue: 2.3m x $57 =$131.1m
If Brent Price is $60 & Nig sold $2.3m i.e 2.3m x $60 = $138m
ECA = 138m -131.1m = $6.9m
If Brent Price is $60 but Nig sold 1.7m Barrels 1/

Revenue is $60 x 1.7m =$102.0m
ECA = $102.0m - $131.1m = -$29.1m
In many cases Govt don't resort to ECA to cover the shortfalls on Oil Production in line with Budgeted 2.3mbpd
What is Govt going to Save when the Crude Oil Price is fluctuating btw $55 - $60 over the past 2 yrs? /2

Cont: If Govt sold 1.9m/bpd at $72
Revenue: $72 x 1.9m = $136.8m
ECA: 136.8m - 131.1m =$5.7m
The idea is, you can't save until you achieve the Projected Revenues to take care of Budgeted Expenditures. ECA is a function of Production & Price of Crude Oil @ any period of time /3

But our Production has never cross 2.0m over the past few yrs due to Production Cut/Cap as per OPEC Regulation. We should all know if this Admin is doing something wrong with ECA; State Governors & their Fin Commissioners who represents the States would've engage the FG openly /4

NGF approve $1bn for Military Hardware. FG settle State Govts $564m as Bal of Paris Club Refund last Yr & recently transferred $250 to NSIA/PIDF. Since most Nigns lack knowledge of Govt activities they resort to anger. Guys need to learn more, than striving to attack people/Govt

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