FG loses $60bn to non-review of PSC ― RMAFC Chairman

THE Acting Chairman of Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Shettima Abba-Gana has said the Federal Government may have lost about $60billion to the non-review of the Petroleum Sharing Contract (PSC) for the past 11years.

He said that the PSC which was introduced in 1993 was expected to be reviewed since oil prices reached $20/barrel or 15 years of production which was happened in 2008, but 11years after the nation lost billions of dollars to private pocket because of the non-review of the PSC.

Abba-Gana who spoke in Abuja at the National Policy and Development Summit (NPOD) organised by the Office of the Senior Special Assistant to the President on Policy Development and Analysis, emphasised the need for government to re-negotiate all the existing PSCs with a view to blocking all leakages.

According to him “PSCs contribute about 15percent to the federation account, but unfortunately, the inability of the government to review the PSCs for the past 11years has led to the loss of $60billion and when I mean loss, it means it has been going to personal pockets.”

He also disclosed that Nigeria also loses about $14.2billion yearly from the Joint Venture Contracts (JVcs) operated by the Nigerian National Petroleum Cooperation.

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Abba-Gana noted that crude oil production level current put at 780,000bpd and pegged at $60per barrel, the federation gets about $30,42million per day and $11.1billion per annum.

Explaining further, the RMAFC Acting Chairman noted that Nigeria recorded higher revenue generation from tax during the Pre Change Agenda Period and Post Change Agenda period.

He, however, maintained that to consolidate the Change Agenda gains of the revenue collecting Agencies, he stressed the need for a comprehensive review of the 1993 PSCs, the introduction of initiatives to stem down pipeline vandalism, crude and product loses to increase production and maximise benefits from production. He also called for the granting of waivers and concessions to be carefully implemented.

In his keynote address, the former Governor of Lagos State Brig. Gen Muhammed Buba Marwa commended the anti-corruption model of governance of the present administration saying that was the only way the government can deliver on its promises as it’s the only requirement to bring back the state into the lives of the people.

He said that although corruption is fighting back given the use of fake news, misinformation and blatant unverifiable lies, the believers of President Muhammadu Buhari remain undeterred in their conviction to change Nigeria with focus on the Next Level.