Insight: Prudent OPEC nations v profligate Nigeria

Insight: Prudent OPEC nations v profligate Nigeria

Tuesday, March 1, 2016 2:59 pm

Looking for aid: Buhari and Qatari Emir

Looking for aid: Buhari and Qatari Emir

By Bayo Onanuga

Sensible nations like individuals keep some money aside for proverbial rainy day. The profligate nations blew all earnings that come their way, only to live to lament like Nigeria at present does, with the global bust in oil prices.

Poor Nigeria, stolen blind especially between 2007 and 2015, now goes cap in hand to fellow OPEC members asking for dollar loan bail out. President Muhammadu Buhari returned on Monday from one of such beggarly visits. Just imagine what those Arabs would be saying behind the Nigerian delegation: that our profligate nation squandered its own riches, while they kept their own.

And the Arabs really kept billions of dollars in investment vehicles in the years of oil boom.

According to NEITI, between 1999 and 2008, Nigeria earned $269 billion from oil and gas exports. In 2006, the earning was $43.4billion, $42.1billion in 2007, $58.2 billion in 2008, $27.1 billion in 2009, the year of meltdown, $41.45 in 2010 andv $63 billion in 2011.Between 2012 and 2013, only $15.52billion flowed into the Federation account out of a projected $65.3 billion, OPEC says $82 billion, making then CBN governor, Emir Sanusi cry out about suspected looting by the oil minders.Then the oil bust came again in 2014.

Saudi Arabia is the top earner in OPEC, earning about $524 billion in 2013 and 2014, combined.

United Arab Emirates earned less than Nigeria, $108 billion in those two years.
Both UAE and Saudi Arabia have done well with their oil boom for decades, enabling them to cope with oil bust, tormenting producers from 2014.

Here is what we gather those oil producers have kept aside, compared to Nigeria’s paltry $1.4 billion being managed by the Nigerian Sovereign Investment Authority.

*The UAE has the biggest investment pool among oil producers. At the last count, it was estimated at $1.2 trillion. It comes from thev $773 billion being managed by Abu Dhabi Investment Authority, $183 billion holding by Dubai Investment Corporation, $110 billion being held by Abu Dhabi Investment Council, $66.3billion held by Abu Dhabi International Petroleum Investment Company and another $66.3 billion held by Abu Dhabi owned Mubadala Development Company. Some of the funds were established as far back as 1976 when Nigeria was in grand self-delusion, that money was not the problem, but how to spend it.
Almost $300 billion of the investments were made in 2006-2008.

*Norway comes next with an investment pool of $855.4 billion, in which government saves surplus oil receipts. Called the Government Pension Fund, it was established in 1990.

*Saudi Arabia has the third largest pool of funds, $632.3 billion.

* Kuwait Investment Authority has $592 billion and Qatar, $256 billion. The Qatar Investment Authority managing the fund was only established in 2003.

* Kazakhstan National Fund established 2000 has an investment portfolio of $77 billion; Russian National Wealth Fund is worth $73.5 billion. The investment started in 2008. In addition, Russia established same year a Reserve Fund of $65.7 billion, making a total investment fund of $140 billion.

* Iran since 1999 kept $62 billion under the care of National Development Fund. Oman investment fund is about $40 billion rich.

United States keeps $53.9 Alaska Permanent Fund and Canada similarly keeps a $17.5 billion Alberta Heritage Savings Trust Fund.

Brunei run by a Sultan maintains a Brunei Investment Agency with $40 billion worth of portfolio. Azerbaijan ‘ s fund is estimated at $37.3billion

In Africa, strife torn Libya has $66 billion being managed by its Investment Authority. It was established in 2006. Algeria under its Revenue Regulation Fund has $50 billion. It was established in 2000.

Angola, with a thieving oligarchy in power kept $5 billion with Fundo Soberano de Angola since 2012.

Even Ghana that began oil production yesterday, has $450 million it has set aside for winter season.

Nigeria has $1.4billion being managed by the Nigerian Sovereign Investment Authority, established in 2011, against strong opposition by forces who wanted Nigeria to eat it’s tomorrow and future today.

Now left with $2.25 billion in excess crude account, $27.8 billion in foreign reserve and a population of 170 million to take care, the leadership and people are now panicky about the national survival and the future, with an oil boom not likely to be experienced again.

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One Comment

  • Bello Bidemi says:

    The anti investment activist are now in government today. A great irony

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