Over $23bn Revenue Generated By Oil And Gas In 2021- NEITI

Posted by African Examiner Business News, Latest Headlines Monday, September 18th, 2023

(AFRICAN EXAMINER) – The Nigeria Extractive Industries Transparency Initiative (NEITI) said the oil and gas industry generated over $23billion in 2021.

The Executive Secretary of NEITI, Dr Orji Ogbonnaya-Orji said this while presenting highlights on the 2021 Oil and Gas report unveiled on Monday in Abuja.

According to Ogbonnaya Orji, the revenue sources included sales of federation crude oil and gas, taxes, royalties, concession rental, gas flare penalty, bonus and license fees, and transportation fees.

He said that the total revenue was also generated through dividends from NLNG, NDDC levy, NCDMB levy, Ness fee, and miscellaneous income.

According to the NEITI boss, a total of $13.2 billion dollars was remitted from the sum to the federation account.

He said that the Nigeria National Petroleum Corporation, before its transition failed to remit about $2 billion to the federation account and a total of $6.9 billion was deducted at FAAC.

Ogbonnaya-Orji said that while oil production for the year under review stood at about 566,129 million barrels per day, gas production came at over 2,743,700 million standard cubic feet per day.

He said that the sector contributed a total of 7.2 per cent to the nation’s Gross Domestic Product (GDP) in 2021 with export contribution of 76.2 per cent.

The executive secretary said that the Federal Government paid about $3.087 billion in cash calls as equity contributions while the outstanding cash-call liabilities payable by the federation stood at about N330.007 billion.

On data of Beneficial Owners (BO) of Assets, Ogbonnaya-Orji said that about 69 companies were covered in the production of the report and have disclosed some BO information through NEITI or CAC portal except four companies.

On subsidy, the NEITI boss said about $1,159 trillion was paid by the government as subsidy between March to December 2021.

“NEITI audits revealed that between 2006 and 2021, a total of N8.149 trillion has been so far expended on petroleum subsidy, now referred to as under-recovery,’ he said.

On recommendations, he said that based on the outstanding liabilities payable to FIRS and NUPRC, the NNPC and NPCD should be investigated while other companies should promptly pay their liabilities.

Ogbonnaya-Orji said the report also recommended that a special investigation be instituted to establish the status of our non-operational refineries and value for money assessment on the refineries should be carried out.

He further reiterated the need to strengthen remediation mechanisms and involve independent third parties to conduct detailed investigations when necessary among other recommendations.

Earlier, stakeholders in the oil and gas sector commended NEITI on efforts towards ensuring transparency and accountability in the industry.

Representing the Secretary to Government of the Federation, George Akume, his Permanent Secretary on Political and Economic Affairs, Esuabana Nko-Asanye, reiterated the importance of the report to economic development.

Akume reaffirmed the Federal Government’s commitment to support and deepen the implementation of the EITI in Nigeria.

He then restated the need for security issues especially in the Niger/Delta to be tackled to reduce losses in the sector.

The Group Managing Director of NNPCL, Mele Kyari, represented by his Chief Compliant Officer, Nasir Usman, pledged the unreserved support of NNPCL to NEITI to enable it achieve its mandate.

Representing the Minister, Budget and Economic Planning, his Permanent Secretary, Nebolisa Anako, stated the importance of data for economic planning.

He then reiterated the commitment of the government to the mandate of NEITI as the oil and gas sector was one of the major sources of foreign exchange for the nation.

The Chairman, House Committee on Petroleum, Hon. Ikenga Ugochinyere, called for the need to amend the NEITI Act and urged for more government allocation to the initiative to enable it better carry out its mandate.

Ugochinyere also pledged the commitment of the House to work towards the implementation of the report that was unveiled today.

Similarly, the Chairmen Senate Committee on Petroleum Upstream, Etang Williams and the Senate Committee on Oil and Gas Host Communities, Benson Agadaga also expressed commitment to stand by NEITI in implementing recommendations of the report.

The News Agency of Nigeria (NAN) reports that the unveiling of the 2021 report,was attended by various stakeholders and partners in the oil and gas sector in the country.