NDEBUMOG PRESENTATION @ PERLS 2019 (BUDGET) TECHNICAL SESSION ABUJA - PowerPoint PPT Presentation

NDEBUMOG PRESENTATION @ PERL’S 2019 (BUDGET) TECHNICAL SESSION ABUJA 4 TH FEBRUARY, 2019

AMOUNT AVAILABLE FOR FGN’S BUDGET. (PLEASE NOTE THAT PRESENTATION OUTLINE IS DOWNPLAYED) 7,165,869,994,451 AMOUNT AVAILABLE FOR FGN BUDGET 1,170,985,667 2018 BUDGET (AS PASSED) 1,384,931,578,205 794,688,449,303 54,133,447,666 207,512,890,147 1,385,541,128,141 37,582,922,472 302,551,098,964 1,469,466,808 1,290,442,726,235 57,870,741,012 324,859,497,742 3,688,282,600,552 3,886,826,300,613 2021 PROJ. 2019 PROJ. 799,517,317,863 273,688,604,246 2,998,862,437,251 358,197,959,172 6,966,989,049,631 6,961,500,917,208 1,375,443,767 31,247,078,652 86,956,620,646 94,613,994,592 2,016,943,284,244 329,201,132,104 229,339,263,648 1,288,084,234 250,244,316,670 39,889,887,640 37,536,384,270 2020 PROJ. 1,142,851,778,618 6,091,274,668,042 AMOUNT AVAILABLE FOR FGN BUDGET 3,331,045,693,399 AMOUNT AVAILABLE FOR FGN BUDGET Share of Oil Revenue 1,809,253,848,038 AMOUNT AVAILABLE FOR FGN BUDGET Share of Dividend (NLNG) AMOUNT AVAILABLE FOR FGN BUDGET Share of Minerals & Mining AMOUNT AVAILABLE FOR FGN BUDGET Share of Non-Oil AMOUNT AVAILABLE FOR FGN BUDGET Share of CIT AMOUNT AVAILABLE FOR FGN BUDGET Share of VAT AMOUNT AVAILABLE FOR FGN BUDGET Share of Customs AMOUNT AVAILABLE FOR FGN BUDGET Share of Federation Acct. Levies

NON-OIL REVENUE (MTEF PROJECTION 2019-2021 ) 1,731,805,088,710 1,414,410,608,814 254,912,855,860 Tax Amnesty - VAIDS Import Value-Added Tax Corporate Tax 2018 B UDG ET (A S PA SSED) 44,612,633,903 1,543,994,718,357 2,500,000,000 848,531,734,297 720,229,459,577 594,206,513,619 119,420,651,362 6,602,294,596 128,302,274,720 305,000,000,000 17,868,990,133 1,732,429,578,279 1,474,585,477,415 Capital Gains Tax Excise Surcharge on Luxury Items Companies Income Tax 233,923,000,863 17,641,300,000 1,703,893,330,714 2,500,000,000 2019 PR O J. 790,975,327,856 670,958,816,016 603,862,934,414 60,386,293,441 6,709,588,160 120,016,511,840 - 6,279,800,000 2,467,498,242,893 Fees Customs NLNG Tax 2,144,502,451,437 289,927,666,342 12,210,441,587 1,859,436,879,988 2,500,000,000 2020 PR O J. 922,830,346,414 730,043,248,207 657,038,923,386 65,703,892,339 7,300,432,482 192,787,098,207 - 20,857,683,527 2,782,715,670,520 Special levies (Federation Account) Main Federation Account Stamp Duties 2,413,016,857,829 332,490,208,288 13,739,318,121 2,033,873,543,494 2,500,000,000 2021 PR O J. 1,004,094,510,063 794,330,637,784 714,897,574,005 71,489,757,401 7,943,306,378 209,763,872,279 - 23,469,286,282

S PECIAL DISTRIBUTION (SIGNATURE’S BONUS) MTEF PROJECTION SPECIAL DISTRIBUTION (SIGNATURE BONUS MTEF PROJECTION) 140,000,000,000 120,000,000,000 124,149,348,808 100,000,000,000 62,970,208,811 91,487,775,455 80,000,000,000 48,547,391,523 60,000,000,000 46,403,822,327 40,000,000,000 35,775,401,943 20,000,000,000 - - - - - - - FGN'S SHARE OF SIGNATURE BONUS STATES' SHARE OF SIGNATURE BONUS LOCAL GOVT.'S SHARE OF SIGNATURE (52.68%) (26.72%) BONUS (20.60%) 2018 Budget (As Passed) 2019 Proj. 2020 Proj. 2021 Proj.

OTHER FEDERALLY FUNDED UPSTREAM PROJECTS Other Federally Funded Upstream Projects 1,573,145,664,852 1,375,348,986,788 535,824,000,000 305,000,000,000 129,625,000,000 124,623,000,000 981,237,245,703 981,237,245,703 90,036,000,000 165,310,000,000 585,911,754,297 30,286,500,000 141,215,000,000 165,310,000,000 32,177,500,000 6,862,500,000 34,190,500,000 6,862,500,000 68,250,852,578 10,086,350,000 11,248,400,000 61,000,000,000 49,135,500,000 61,000,000,000 266,048,450,000 29,813,401,719 61,663,222,500 107,878,500,000 41,478,370,706 915,000,000 41,913,320,454 15,250,000,000 15,250,000,000 14,892,748,443 915,000,000 17,871,298,132 823,500,000 823,500,000 - - - - - - - - - 2018 BUDGET (AS PASSED) 2019 PROJ. 2020 PROJ. 2021 PROJ. Other Federally Funded Upstream Projects National Domestic Gas Development Gas Infrastructure Development Brass LNG Gas Supply Projects Frontier Exploration Services (NFES) EGTL Funding Renewable Energy Development (RED) Pipeline Security & Maintenance Cost Nigerian Crude Oil Finger Printing Pre-Export Financing PMS Under-Recovery Crude Oil Pre-Export Inspection Agency Expenses (NESS)

NNPC JV Royalty Oil & Gas Royalties Breakdown JV Partner Royalty PSC Royalty SC Royalty Independent Producers' Royalty 747,465,222,184 Marginal Fields Royalty 685,726,599,191 673,691,737,520 MCA Royalty 663,400,776,665 494,018,087,589 EF Royalty 477,933,892,866 473,251,872,273 190,342,444,371 187,557,998,081 538,496,450,391 Repayment Arrears (Royalties) - NNPC 3,731,156,842 3,143,454,524 112,230,379,629 Repayment Arrears (Royalties) - JV Partner 170,152,842,458 Gas Royalties (net of Cost Recovery) 4,107,593,295 4,819,259,250 Concessional Rentals Concessional Rentals Gas Flared Penalty Gas Flared Penalty Miscellaneous (Pipeline Fees etc) Miscellaneous (Pipeline Fees etc) Exchange Gain Incidental Oil Revenue (Royalty Recovery, Marginal Field Licences & Early Licence Renewal) Miscellaneous (Pipeline Fees etc) 1 2 3 4 Royalties Recovery and Renewal of Licences/Marginal Fields Royalties Recovery and Renewal of Licenses Good and Valuable Consideration of Diversted Assets

NDEBUMOG CONCERNS (+ AND - ) ABRIDGED…  Revenue(NLNG): 69.9 billion (2018) and 82.2 billion (2019) is commendable for the government.  Solid minerals: 2.7 billion (2018) and 3 billion (2019)- There’s a huge gap to be covered at moving away from the Dutch disease. Pro- poor communal mining and privatize (explorative) mining, should be reconciled with policy’s incentives.  Signature bonus: 173.6 billion (This should be interrogated in alignment to anticipatory passage of PIGB and disinvestments from unincorporated JVs to incorporated JVs viz a viz interest of the poor and the downtrodden).  Crude oil & gas (PSC) New Terms: 320 billion (2018 & 2019), NNPC’s (JV) GITax: 110 billion (2018) and 375 billion (2019) needs further transparency.  13% Derivation: 920 billion (2018) and 1.1 trillion projection (2019). Unfortunately, these figures aren’t transforming the Niger Delta for reasons we all know (sic)…  Gencos, Discos and Transcos contributions to the budget is 0%. Yet, the (power) sector has been privatized, except for transcos …More funding to “ a privatized” power sector needs to be interrogated…  There’s a seeming confusion about the CTC of the 2019 budget’s proposal that was transmitted to NASS. 2019, as election year is compounding the matter…Notwithstanding, NDEBUMOG is putting machinery in place for engagement with NASS (informally) and formally on the 2019 budget. There are more to say but for time constraint, we could not…  Thanks for your attention!