The Nigeria Extractive Industries Transparency Initiative (NEITI) says outstanding revenues due to the federal government in the oil and gas industry rose to $6.071 billion and N66.4 billion, respectively, as of June 2024.
NEITI disclosed the outstanding in its ‘2022/2023 Independent Oil and Gas Industry Report’ unveiled in Abuja on Thursday.
Breaking down the debt, NEITI said outstanding liabilities were $6.049 billion and N65.9 billion in unpaid royalties and gas flare penalties, due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as of August 31.
Also, outstanding petroleum profit taxes, company income taxes, withholding taxes, and value-added tax (VAT) amounting to $21.9 million and N492.8 million were due to the Federal Inland Revenue Service (FIRS) as of June 2024.
NEITI said among other key findings in the report, is a significant reduction in petrol importation — which fell from 23.54 billion litres in 2022 to 20.28 billion litres in 2023.
Also, NEITI said N15.87 trillion was claimed as under-recovery or price differentials between 2006 and 2023, with the highest amount, N4.71 trillion, recorded in 2022.
“On crude production, fiscalized crude production in 2022 stood at 490.945 million barrels, compared to 556.130 million barrels produced in 2021, representing an 11% decline,” the agency said.
“However, in 2023, NEITI’s independent report revealed total fiscalised production of 537.571 million barrels, a 46.626 million-barrel or 9.5 percent increase from total production recorded in 2022.
“A 10-year trend (2014–2023) of fiscalised crude oil production in Nigeria shows the highest production volume of 798.542 million barrels was recorded in 2014, while the lowest, 490.945 million barrels, was recorded in 2022.”
According to NEITI’s data on crude lifting, in 2023, 534.159 million barrels were lifted, compared to 482.07 million barrels in 2022 and 551 million barrels in 2021.
“On oil theft and crude losses, a total of 7.68 million barrels of crude were either stolen or lost in 2023, representing a significant drop of 79% (29.02 million barrels) compared to 36.69 million barrels either stolen or lost in 2022,” the report said.
“On overall revenue generation in the oil and gas industry, the report showed that material companies accounted for US$15.549 billion (96%) and non-material companies for US$695.604 million (4%) in revenues generated in 2022.
“In 2023, material companies accounted for US$21.415 billion (95%), and non-material companies accounted for US$1.238 billion (5%). The revenues came from 17 identified revenue streams, including proceeds from taxes, oil and gas sales, dividends from NLNG, royalty payments, signature bonuses, gas flare penalties, and concessions.”
‘NEITI REPORT PROVIDES VALUABLE INSIGHTS TO GUIDE POLICY’
Speaking at the public presentation of the reports in Abuja, Ogbonnaya Orji, NEITI’s executive secretary, said the report provides valuable insights to guide policy, encourage public debate, and improve governance in managing Nigeria’s natural resources.
“The report remains a vital tool for identifying leakages, improving revenue collection, and promoting resource management reforms,” Orji said.
“It serves as an authoritative document that provides comprehensive data and information on revenues, governance structures, operations, and compliance within the oil and gas sector for the 2022/2023 period.”
In his remarks, George Akume, secretary to the government of the federation (SGF) and chairman of the NEITI board, reaffirmed the federal government’s commitment to NEITI’s principles.
“We consider the EITI not only as a global standard for promoting transparency in the management of revenues from natural resources but also as a tool to strengthen public trust, accountability, and economic growth,” Akume said.
He assured that the government will thoroughly study the report to ensure effective implementation.
On his part, Ola Olukoyede, chairman of the Economic and Financial Crimes Commission (EFCC), vowed to investigate and recover debts owed to the government, citing NEITI’s reports as crucial in the fight against corruption.
“Where NEITI’s work stops, EFCC’s begins,” Olukoyede said.
He said the EFCC will probe companies identified in the report.
“This demonstrates the effectiveness of NEITI’s reports in recovering public funds and promoting accountability,” Olukoyede said.
He also said as of Wednesday, over N1 billion has been approved for remittance to the federation account as a result of investigations sparked by NEITI’s previous report.
Olukoyede said additional investigations are ongoing and every recovered funds would be sent to the federation account.
In November 2023, the Extractive Industries Transparency Initiative (EITI) said Nigeria may be suspended if it fails to meet requirements for validation commencing January 1, 2026.
NEITI, on April 24, said it had developed a corrective action plan to address issues identified in its validation report by the EITI.(The Cable)
