The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that outstanding revenues owed to the Federal Government by the oil and gas industry have risen to $6.07 billion and N66.4 billion as of June 2024. The information was disclosed on Thursday in Abuja during the public presentation of the 2022 and 2023 Independent Oil and Gas Industry Reports.
The report, which was prepared by the NEITI Board and the National Stakeholders Working Group (NSWG), was unveiled by Ola Olukoyede, Chairman of the Economic and Financial Crimes Commission (EFCC), alongside Sen. George Akume, Secretary to the Government of the Federation, and other dignitaries.
According to NEITI, a significant portion of the outstanding liabilities includes $6.049 billion and N65.9 billion in unpaid royalties and gas flare penalties, due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). These amounts are expected to be paid by August 2024.
The report also highlighted that $21.93 million and N492.8 million in petroleum profit taxes, company income taxes, withholding taxes, and Value Added Tax (VAT) were owed to the Federal Inland Revenue Service (FIRS) by June 2024.
On fuel importation, the report disclosed that 23.54 billion liters of Premium Motor Spirit (PMS) were imported in 2022, but this dropped to 20.28 billion liters in 2023, representing a 14% decline after the removal of the fuel subsidy.
A 10-year trend analysis from 2014 to 2023 showed that 2022 saw the highest annual PMS importation of 23.54 billion liters, while the lowest, 16.88 billion liters, was recorded in 2017. Additionally, N15.87 trillion was claimed as under-recovery/price differentials from 2006 to 2023, with 2022 alone accounting for N4.714 trillion.
Regarding crude oil production, Nigeria produced 490.95 million barrels in 2022, a decline of 11% from 556.13 million barrels in 2021. However, production rebounded in 2023 with a total of 537.57 million barrels, a 9.5% increase from the previous year.
The report also detailed crude lifting figures, showing that 482.07 million barrels were lifted in 2022, compared to 551.01 million barrels in 2021. In 2023, crude lifting increased by 11% to 534.16 million barrels.
In terms of oil theft, the report highlighted a significant reduction in crude losses. In 2023, 7.68 million barrels were either stolen or lost, a 79% drop from the 36.69 million barrels lost in 2022.
NEITI’s report comprehensively reviewed the regulatory framework for Nigeria’s oil and gas sector, including laws like the Petroleum Industry Act (PIA) of 2021, and reforms aimed at addressing corruption risks in the industry.
The event was supported by the European Union and the Rule of Law and Anti-Corruption (RoLAC) program, implemented by the International Institute for Democracy and Electoral Assistance (IIDEA).
