Nigeria's oil windfall

[neozizo]

LOL.Very funny Ete.
As at last Friday,Nigeria's foreign reserve stood at $38Billion.
Don't you guys thinK that the parasitic mulinational oil companies have a part in the mis appropration of the cash?

[HUSNAA]

I dont think so Zizo. I am not an economist, but I have never heard Shell or any oil company give an end of year report of its earnings that included what should accrue to Nigeria. Do they do that?

[Dave_McEwan_Hill]

I think you will find that the sums discussed represent taxation revenues that are taken by Governments on barrels of oil.
The multi-nationals sell the oil and pay a percentage of it in tax on the their volume of extraction to your government. They can't missapproriate taxation revenues.

[HUSNAA]

I think you will find that the sums discussed represent taxation revenues that are taken by Governments on barrels of oil.
The multi-nationals sell the oil and pay a percentage of it in tax on the their volume of extraction to your government. They can't missapproriate taxation revenues.

Oh dear! so its not even an uneven partnership where the oil companies get 55% and govt gets 45% of revenues generated. So which is the better option. Is nigeria better off receiving  a percentage in taxation or would it have been better off receiving a direct percentage of the revenues?