The Nigeria Extractive Industries Transparency Initiative said the oil and gas industry generated over $23 billion in 2021.
Its Executive Secretary, Dr. Orji Ogbonnaya Orji, said this during the presentation of the 2021 Oil and Gas report.
The report was unveiled on Monday in Abuja.
According to Orji, the revenue sources included sale of federation crude oil and gas, taxes, royalties, concession rental, gas flare penalty, bonus and licence fees and transportation fees.
He said that the total revenue was also generated through dividends from Nigeria Liquefied Natural Gas Limited, Niger Delta Development Commission levy, Nigerian Content Development and Monitoring Board levy, Ness fee and miscellaneous income.
According to the NEITI boss, a total of $13.2 billion 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 the Federation Accounts Allocation Committee.
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 percent to the nation’s Gross Domestic Product in 2021 with export contribution of 76.2 percent.
The Executive Secretary said 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 of Assets, Orji said about 69 companies were covered in the production of the report and have disclosed some BO information through NEITI or Corporate Affairs Commission 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 so far been expended on petroleum subsidy, now referred to as under-recovery,” he said.
On recommendations, he said that based on the outstanding liabilities payable to the Federal Inland Revenue Service, Nigerian Upstream Petroleum Regulatory Commission, NNPC and NPCD should be investigated while other companies should promptly pay their liabilities.
Orji said the report also recommended that a special investigation be instituted to establish the status of the 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 the 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 Compliance 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.
Anako 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.
- Ogun APC congratulates Dapo Abiodun over victory at tribunal, says his mandate is ‘divine’
- Police arrest six over murder of varsity student in Katsina
- Lagos to host shopping festival with spice of entertainment
- Ogun tribunal upholds Governor Abiodun’s election
- Don’t allow bureaucracy undermine purpose of President’s social welfare initiative, Sanwo-Olu tells Minister
Ugochinyere also pledged the commitment of the House to work towards the implementation of the report that was unveiled today.
Similarly, the Chairmen of the Senate Committee on Petroleum Upstream, Etang Williams, and 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 reports that the unveiling of the 2021 report was attended by various stakeholders and partners in the oil and gas sector in the country.