Latest NEITI Report Reveals Oil Firms Owe Nigeria Over $6bn
By Juliet Ukanwosu
Data contained in the Nigeria Extractive Industries Transparency Initiative (NEITI) 2022 and 2023 Independent Oil and Gas Industry Report, released today in Abuja has revealed that oil and gas companies owe Nigeria over $6.071 billion and N66.4 billion, respectively, as of June 2023.
A breakdown shows that the 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 collectible revenues by August 31, 2024.
A further breakdown shows outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT due to the Federal Inland Revenue Service, amounting to $21.926 million and N492.8 million as of June 2024.
The report showed that fiscalized crude production in 2022 stood at 490.945 million barrels, compared to 556.130 million barrels produced in 2021, representing an 11% decline. However, 2023 showed a total fiscalised production of 537.571 million barrels, representing 9.5% increase from total production recorded in 2022.
A 10-year trend (2014–2023) of fiscalised crude oil production in Nigeria showed that the highest production volume of 798.542 million barrels was recorded in 2014, while the lowest, 490.945 million barrels, was recorded in 2022.
On crude lifting, data showed that in 2022, total crude lifting was 482.074 million barrels compared to 551.006 million barrels lifted in 2021. In 2023, total crude lifting stood at 534.159 million barrels, representing an 11% increase of 58.08 million barrels.
On revenue, a further breakdown of the data showed that material companies accounted for $15.549 billion (96%) and non-material companies accounted for $695.604 million (4%) in revenues generated in 2022. In 2023, material companies accounted for $21.415 billion (95%), and non-material companies accounted for $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,” the report noted.
Interestingly, the report showed that 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.
On fuel importation, the report disclosed that a total of 23.54 billion litres of petrol were imported into the country in 2022, while 20.28 billion litres were imported in 2023. “This represents a reduction of 3.25 billion litres, or a 14% decline, following the removal of the subsidy,” the report stated.
A detailed 10-year trend analysis (2014–2023) showed that the highest annual petrol importation into the country, 23.54 billion litres, was recorded in 2022, while the lowest, 16.88 billion litres, was recorded in 2017. The NEITI report also disclosed that a total of N15.87 trillion was claimed as under-recovery/price differentials between 2006 and 2023, with the highest amount, N4.714 trillion, recorded in 2022.
Speaking at the event, Secretary to the Government of the Federation, Sen. George Akume, reaffirmed the unwavering commitment of the Federal Government of Nigeria to the principles of the Extractive Industries Transparency Initiative (EITI) being implemented in the country’s oil and gas sector by NEITI.
“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,” the SGF, who also chairs the NEITI board, stated.
He acknowledged that information and data provided by NEITI’s independent reports have consistently proven invaluable to the government, noting that the reports have guided policy decisions, reforms, and measures that foster accountability, particularly in the oil and gas sector.
“In a sector where opacity could easily lead to leakages, inefficiencies, and corruption, NEITI has become an indispensable partner in ensuring that Nigerians are fully aware of how their commonwealth is managed,” Akume said.
Speaking further, he said: “As the Chairman of the NEITI Board, I stand before you today to underscore the Federal Government’s respect for NEITI’s independence. While my role as Chairperson is a testament to the importance the government places on NEITI, it also signifies the commitment to ensure that NEITI operates independently, without interference, as mandated by the EITI standard.”
Also speaking at the event, Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, explained that the preparation of the report followed a meticulous and transparent process in line with global Extractive Industries Transparency Initiative (EITI) standards.
“A rigorous, multi-stakeholder approach was adopted, involving extensive collaboration with government agencies, extractive companies, civil society, and indigenous consultants. We ensured that all data was collected, validated, and reconciled in an open and transparent manner,” he said.
Dr. Orji added that the report provides valuable insights that will help guide policy, encourage robust public debate, and ultimately improve governance in the management of our natural resources. The report, as always, remains a vital tool for identifying leakages, improving revenue collection, and promoting resource management reforms.
In his remarks, Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Olanipekun Olukoyede, informed that from NEITI’s past reports, the Commision recently recovered and remitted to the Federal Government coffers over N1 billion, while giving assurance that the current reports released by NEITI will be taken over by the EFCC for thorough and further investigations of its findings and recommendations.
He further warned extractive companies against non-compliance or cooperation with NEITI Independent Audit process, adding that the EFCC and NEITI are in close partnership in the challenging war against leakages especially in the oil, gas and mining industry.
Subscribe To Newsletter
