The Federal Government’s total revenue flows to the Federation Account stood at $58.07 billion, while its revenue losses stood at $3.8 billion in 2013.
Dr. Kayode Fayemi, the Minister of Solid Minerals, who announced this, however, said N358.3 billion was part of the loss in the year.
Fayemi, who doubles as Chairman of the Governing Board of the Nigeria Extractive Industries Transparency Initiative, said this on Monday while presenting NEITI’s 2013 Audit Reports in Abuja.
The News Agency of Nigeria (NAN) reports that 41 oil and gas producing companies and 16 government’s agencies participated in the 2013 audit reports.
Fayemi said the total revenue flows to the federation from all sources in 2013 came to $58.07 billion, adding that this included revenues from crude oil sales, taxes, royalties and other incomes.
He said the revenues realised in 2013 represented a decline of eight per cent when compared with the $62.9 billion in 2012.
He said: “This decline was attributed to the drop in oil and gas sales following divestment of federation equity in some Oil Mining Leases and crude losses.
“It was also as a result of destruction of production facilities, pipeline vandalism and crude oil theft.”
The report stated that some revenues that should have gone to the federation in 2013 were not made or lost to a number of reasons.
It said: “These include the sum of $3.8 billion and N358.3 billion as outstanding revenues from NNPC and its sub-units in 2013.
“These outstanding payments were due from unpaid consideration from the divested OMLs, cash-call refunds from the National Petroleum Investment and Management Services.”
The payments also included the Nigerian Petroleum Development Company Limited lifting from Nigerian Agip Oil Company Limited.
Fayemi said the Federal Government also lost $5.9 billion and N20.4 billion revenues due to offshore processing agreement, crude swap and crude theft.
He said: “It lost the sum of $599.98 million as under-assessments/under-
“This was as a result of the use of different pricing methodology by the government and the companies because of the absence of a new fiscal regime.”
Fayemi said the report stated that Nigeria Liquefied Natural Gas paid $1.289 billion as dividend, interest and loan repayment for 2013.
He said: “NNPC acknowledged receipt of this amount but did not remit it to either the Federal Government or Federation Account.”
He said the report, however, recommended that the Federal Government should conduct a comprehensive investigation into the divestments of federation assets by NNPC to NPDC.
He said: “NNPC should abide by the Federal Government’s financial regulations and always comply with the 90-day credit period.
“NNPC and its sub-units should refund outstanding payments to the federation and government should investigate the status of NLNG dividends.”
NAN.
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