Akwa Ibom State oil revenue has dropped by 70 percent, Govt won’t be able to pay Public Servants, Pensioners, Contractors – Commissioner for Finance
…govt should have saved for the rainy day by trimming expenses on irrelevant projects like Worship Center – NLC
There may be tougher days ahead for Akwa Ibom people as ExxonMobil has declared a force majeure on Qua Iboe Terninal (QIT).
The Commissioner for Finance, Mr Nsikan Linus Nkan said the declaration of force majeure on Qua Iboe Terminal has caused 70 percent decrease in the projected oil derivation revenue accrueable to Akwa Ibom State in the month of March 2021.
Accordingly, the Commissioner said the unexpected decrease in the State revenue will affect the activities of Government including the State’s ability to meet its monthly financial obligations to Public Servants, Pensioners and Contractors.
The declaration of force majeure by ExxonMobil came as a result of a fire incident which was caused by gas explosion in the terminal in December 2020 leading to a temporary shutdown of activities in the terminal.
Qua Iboe Terminal is located on the eastern side of the Qua Iboe River, Ibeno, Akwa Ibom State and contains nine crude oil storage tanks.
ExxonMobil is the major International Oil Company involved in oil and gas exploration and production activities in Akwa Ibom State.
Meanwhile, Comrade Iboro Ibara, Secretary of the Akwa Ibom Chapter of Nigeria Labour Congress (NLC) has reacted to claims by the Commissioner for Finance that the government won’t be able to pay salary of workers, pensioners and meet it’s obligations to contractors because ExxonMobil has declared a force majeure on Qua Iboe Terninal (QIT).
Iboro Ibara said government should have prepared for the rainy day by trimming expenses on irrelevant projects.
“This is what I’ve been talking about! There’s always a reason for Governments not to be profligate. A reasonable leadership would always plan for the proverbial rainy day by trimming its expenses on irrelevant projects and prioritizing high net worth human capital development projects. What do we have in our own case? A Government truly disconnected both from her citizens and from the realities of the modern world. Your State is heavily indebted on the domestic and international fronts, you cannot provide computers and computer instructors in your schools, yet you push scarce funds into a Leviathan project in the pretext of worshipping God. I think its time they visit their “altar” and procure the expected miracle. And let all rabble-rousing praise-singers forsake not their drums in the oncoming maelstrom”, he said.