So let me make it practical for the benefit of those who believe this exaggeration:
Nigeria produces about 1.6mln barrels. Let's assume 50% of that is produced with PSC contracts, which is 800k barrels per day. Let's assume oil prices are $60 and unit Operating cost is $15 per barrel
Revenue is 800k barrels * $60*365 days = $17,520,000,000
Royalty is about 13%, so
$17,520,000,000
Minus Royalty of
$2, 227,600,000
Remains $15, 242,400,000
Deduct opex ($15*800,000*365)=$4,380,000,000)
Deduct Expex estimate ($500,000,000)
Remaining is $10,632,400,000
Deduct Education Tax (3% of above) $310,000,000
Remains $10,351,528,000
Deduct Capital Allowances. This can very widely based on amount of Capex spent recently. Let me estimate it at $20 per barrel = 10*800,000*365 = $2.920,000,000
Remains $7,331,628,000 Which is chargeable Profit.
Tax is 50% = $3,665,814,000 (This is Tax Oil
Remaining 50% is profit =$3,665,814,000
Of which NNPC may take 55% and IOC 45%
So NNPC profit oil is $2,016,197,000
30% for Frontier Fund $604,895,310
30% for Management Fee $604,895,310
WHAT DOES GOVERNMENT GET:
Royalty - $2.23bln
Education Tax - $310mln
Petroleum Profit Tax - $3.66bln
Remaining Profit Oil after NNPC deduction -$806mln
Total - $7.1bln
Not to mention all the VAT, WHT, Customs duties, Port Charges on transactions within the industry.