According to the Nigeria Extractive Industries Transparency Initiative (NEITI), the oil and gas industry will produce more than $23 billion in 2021.
Dr. Orji Ogbonnaya-Orji, Executive Secretary of NEITI, stated this while delivering highlights from the 2021 Oil and Gas report, which was released on Monday in Abuja.
Revenue streams included sales of federation crude oil and gas, taxes, royalties, concession rental, gas flare penalty, bonus and license fees, and transportation fees, according to Ogbonnaya-Orji.
He further stated that the whole money was derived through dividends from NLNG, the NDDC tax, the NCDMB levy, the Ness fee, and miscellaneous revenues.
According to the NEITI’s director, a total of $13.2 billion was transferred from the sum to the federation account.
He stated that prior to its handover, the Nigeria National Petroleum Corporation failed to deposit around $2 billion to the federation account, and a total of $6.9 billion was deducted at FAAC.
According to Ogbonnaya-Orji, while oil production for the year under review was around 566,129 million barrels per day, gas production was over 2,743,700 million standard cubic feet per day.
According to him, the sector will contribute 7.2% of the nation’s GDP in 2021, with exports accounting for 76.2%.
According to the executive secretary, the Federal Government paid around $3.087 billion in cash calls as equity contributions, while the federation’s outstanding cash-call liabilities were approximately N330.007 billion.
Concerning Beneficial Owners (BO) of Assets, Ogbonnaya-Orji stated that, with the exception of four firms, approximately 69 companies were covered in the report’s creation and had given some BO information through the NEITI or CAC portal.
In terms of subsidies, the NEITI chief stated that the government paid around $1,159 trillion in subsidies between March and 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 stated that the NNPC and NPCD should be probed based on outstanding liabilities owing to FIRS and NUPRC, while other enterprises should swiftly pay their liabilities.
According to Ogbonnaya-Orji, the report also recommended that a special investigation be launched to determine the status of our non-operational refineries, as well as a value for money assessment of the refineries.
He also emphasized the importance of strengthening remedial systems and involving impartial third parties to conduct extensive investigations as needed, among other recommendations.
Previously, players in the oil and gas industry praised NEITI for its efforts to ensure transparency and accountability in the industry.
The Permanent Secretary on Political and Economic Affairs, Esuabana Nko-Asanye, spoke on behalf of the Secretary to Government of the Federation, George Akume, and emphasized the importance of the report to economic development.
Akume emphasized the Federal Government’s commitment to supporting and deepening NEITI implementation in Nigeria.
He also reiterated the importance of addressing security challenges, particularly in the Niger/Delta region, in order to cut losses in the sector.
Mele Kyari, Group Managing Director of NNPCL, was represented by his Chief Compliance Officer, Nasir Usman, who affirmed NNPCL’s unqualified support for NEITI’s mission.
Nebolisa Anako, Permanent Secretary to the Minister of Budget and Economic Planning, spoke about the importance of statistics in economic planning.
He then reaffirmed the government’s commitment to the NEITI mandate, citing the oil and gas sector as one of the nation’s primary sources of foreign cash.
Hon. Ikenga Ugochinyere, Chairman of the House Committee on Petroleum, advocated the amendment of the NEITI Act and increased government funding for the initiative to better carry out its objective.
Ugochinyere also pledged the House’s commitment to working toward the implementation of the report released today.
Similarly, the Chairmen of the Senate Committee on Petroleum Upstream, Etang Williams, and the Senate Committee on Oil and Gas Host Communities, Benson Agadaga, expressed their willingness to support NEITI in implementing the report’s recommendations.
According to the News Agency of Nigeria (NAN), the launch of the 2021 report was attended by key stakeholders and partners in the country’s oil and gas sector.
