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Wikipedia gives 2.231 million barrels exported per day for Nigeria in 2013. At $50 per barrel this amounts 40 billion Dollar per year. I have no idea what the p

Wikipedia gives 2.231 million barrels exported per day for Nigeria in 2013. At $50 per barrel this amounts 40 billion Dollar per year. I have no idea what the profit margins are but at 10 % this yields only 4 billion Dollar in profits per year which seems rather little to me, especially given that it is the 6th largest oil exporter. So 76 million Dollar would be 1.9 % of the annual profits from oil exports, not much but also not negligible. But I think I must have committed an error somewhere, those 4 billion Dollar just look too tiny to me.

harmlessposter 9y ago
they probably consume a significant amount internally which will not show up in exports.
andymcsherry 9y ago
$40B / year actually seems to be a high estimate for revenue: http://www.worldstopexports.com/worlds-top-oil-exports-country/ http://www.worldstopexports.com/worlds-top-oil-exports-count... This has $27B in 2016, which is a 73% drop from 2012. You're probably right that it's a significant chunk of money for them, especially when they've recently lost 3/4s of their market share.
danjoc 9y ago
According to this, http://www.thisdaylive.com/index.php/2016/06/18/wsj-nigerias-cost-of-oil-production-now-worlds-3rd-most-expensive/ http://www.thisdaylive.com/index.php/2016/06/18/wsj-nigerias... Nigeria charges $4.11 per barrel in taxes. So I guess they get that $4B in tax revenue. 1.9% of oil tax revenue is not negligible, but I would think Nigeria would have more national pride than accept. Like Bolivia with Bill Gate's chickens. Anyway, by GDP, Nigeria is 27, https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal) https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nomi...
- yipopov 9y ago
  There's far more tax revenue than from just the oil itself. All the labour and equipment used for drilling is taxable too. Nigeria has no excuses.
D_Alex 9y ago
>I have no idea what the profit margins are but at 10 %... Profit margins do not give the correct picture, which is rather complex, and involves royalties, multiple layers of taxation, "production sharing agreements, etc. A good way to look at this is to take production costs (around US$ 20-25 per barrel in Nigeria) from the oil price, giving a margin of say $30/bbl. This should be applied to the entire production, not just the exports, since the country would need to import the oil for domestic needs if it did not produce it. Furthermore, a part of the production costs is internal spending, but there are also profits repatriated, so to keep things simple let's make the rough assumption that these two are roughly equal... this gives the benefits from oil production (at 2.7 mmbbl/d) at about US$80 million per day, or about $30 billion per year.

harmlessposter 9y ago

they probably consume a significant amount internally which will not show up in exports.

andymcsherry 9y ago

$40B / year actually seems to be a high estimate for revenue: http://www.worldstopexports.com/worlds-top-oil-exports-country/ http://www.worldstopexports.com/worlds-top-oil-exports-count... This has $27B in 2016, which is a 73% drop from 2012. You're probably right that it's a significant chunk of money for them, especially when they've recently lost 3/4s of their market share.

danjoc 9y ago

According to this, http://www.thisdaylive.com/index.php/2016/06/18/wsj-nigerias-cost-of-oil-production-now-worlds-3rd-most-expensive/ http://www.thisdaylive.com/index.php/2016/06/18/wsj-nigerias... Nigeria charges $4.11 per barrel in taxes. So I guess they get that $4B in tax revenue. 1.9% of oil tax revenue is not negligible, but I would think Nigeria would have more national pride than accept. Like Bolivia with Bill Gate's chickens. Anyway, by GDP, Nigeria is 27, https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal) https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nomi...

yipopov 9y ago
There's far more tax revenue than from just the oil itself. All the labour and equipment used for drilling is taxable too. Nigeria has no excuses.

D_Alex 9y ago

>I have no idea what the profit margins are but at 10 %... Profit margins do not give the correct picture, which is rather complex, and involves royalties, multiple layers of taxation, "production sharing agreements, etc. A good way to look at this is to take production costs (around US$ 20-25 per barrel in Nigeria) from the oil price, giving a margin of say $30/bbl. This should be applied to the entire production, not just the exports, since the country would need to import the oil for domestic needs if it did not produce it. Furthermore, a part of the production costs is internal spending, but there are also profits repatriated, so to keep things simple let's make the rough assumption that these two are roughly equal... this gives the benefits from oil production (at 2.7 mmbbl/d) at about US$80 million per day, or about $30 billion per year.