The Nigeria Extractive Industries Transparency Initiative (NEITI) has forecast an upward trend in revenue receipts into the government coffers from the oil and gas sector as well as the attendant increases in the Federation Allocation Accounts Committee (FAAC) disbursements.
The agency said in the projection that “FAAC disbursements will increase further in 2019 largely due to expected increase in Nigeria’s oil production and further consolidation of efforts by OPEC to keep oil prices from falling.”
“With the concerted efforts by the Organization of Petroleum Exporting Countries to limit oil production, coupled with sanctions on Iran and Venezuela oil exports, it is expected that oil prices will not fall to the very low levels experienced from 2014 to 2017,” it further explained.
At the domestic level, NEITI said in its latest Quarterly Review, that Nigeria’s oil production will increase in 2019 given the take-off of Egina offshore field, which started production in December 2018, with optimum production capacity of 200,000 barrels per day (bpd).
“Production from this field and other shut-in fields whose production is expected to come back on-stream will increase the nation’s oil production,” the review observed.
The NEITI Quarterly Review is designed to provide timely information and data as tool to support citizens’ engagement, advocacy, constructive debate, information sharing and enlightenment in tracking the utilization of extractive revenue funds for purposes of development.
The latest edition is the 10th issue of the NEITI Quarterly Review, which was started in late 2016 as one of the transparency agency’s new policy and advocacy instruments.