TVC E, BUSINESS – The Chairman, House Committee on Appropriation, Abdulmuninu Jubrin has disclosed that the country loses 1 trillion Naira annually as production costs in the exploration of oil.
And as the National Assembly continues its consideration of the 2016 Appropriation bill, he said he is not amused that this year’s budget stands at more than 6 trillion Naira, the highest in Nigeria’s history.
Jubrin, in a chat with newsmen said the National Assembly is bent on bringing down the one trillion Naira spent annually as the production costs of oil exploration.
He said: “One very important aspect that swallows a large chunk of the money in the budget is the cash call and production costs. Many people take their eyes away from production costs.
“But it is critical, this is because every year we pay an average of N1 trillion as cost of production. So, it is important that this time around, we need to sit with relevant authorities in the oil and gas sector to see the details of this production cost, to ensure the country is not just being shortchanged.
“We are just mopping a lot of money from the first line charge just to give to our foreign partners.
The legislator also expressed concern that though there is increased capital expenditure in this year’s budget, there is a simultaneous rise in recurrent expenditure.
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