Nigeria Earned $418.5 Billion In 10 Years From Petroleum – NEITI Reveals

Nigeria Earned $418.5 Billion In 10 Years From Petroleum – NEITI Reveals

By Wires Editor | The Trent on June 17, 2021
Nigerians Pump petrol price

Nigeria earned $418.544 billion in oil and gas revenue from 2010 to 2019, an audit report by the Nigeria Extractive Industries Transparency Initiative, NEITI, has revealed.

The 2019 Oil and Gas Industry report which was released on Thursday, June 17, 2021, showed that Nigeria earned a total sum of $34.22 billion from the oil and gas sector in 2019, representing a rise of 4.88 percent compared to the $32.63 billion revenue netted from the sector in 2018.

A breakdown of the 2019 earnings showed that payments by companies accounted for $18.90 billion, while flows from Federation sales of crude oil and gas accounted for $15.32 billion.

The report also showed that N518.074 billion was spent by the Federal Government through the Nigerian National Petroleum Corporation, NNPC, in 2019.

A statement by NEITI’s Head, Communication and Advocacy, Obiageli Onuorah explained that the report also showed that ten years (2010-2019) aggregate financial flows from the oil and gas sector to government amounted to $418.544billion, with the highest revenue flow of $68.442 recorded in 2011, while the lowest revenue flow of $17.055 was recorded in 2016.

The report disclosed that total crude oil production in 2019 was 735.244 million barrels, representing an increase of 4.87 percent over the 701.101mmbbls recorded in 2018.

“Production sharing contracts, PSCs, contributed the highest volumes of 312.042mmbbls followed by Joint Venture, JV, and Sole Risk, SR, which recorded 310,284mmbbls and 89.824mmbbls respectively. Others are Marginal Fields, MFs, and Service Contracts, SCs, which accounted for 21,762mmbbls and 1,330mmbbls respectively”, the report added.

The report also showed that total crude oil lifted in 2019 was 735.661mmbbls, indicating a 4.93 percent increase to the 701.090 mmbbls recorded in 2018, with companies lifting 469.010mmbbls, while 266.650mmbbls was lifted by the Nigeria National Petroleum Corporation, NNPC, on behalf of the Federation.

A breakdown of the crude oil lifted by NNPC showed that 159.411mmbbls was for export, while 107.239mmbbls was for domestic refining. 97 percent of the volumes for domestic refining (104.475mmbbls) was utilised for the Direct Sale Direct Purchase, DSDP, programme while the remaining 3 percent (2.764mmbbls) was delivered to the refineries.

NEITI reported that the value of the 2019 domestic crude oil earnings was N2.722 trillion. Of this figure, N518.074billion was deducted for Petroleum Motor Spirit, PMS, under-recovery by the NNPC.

“This figure was N213.074billon above the approved sum of N305billion for under-recovery in 2019. Similarly, the sum of N126.664billion was incurred by the Corporation as costs for pipeline repairs and maintenances which showed a difference of N96.378billion from the approved sum of N30.287billion for that purpose”.

The report also pointed out that N31.844billion was also deducted for crude and product losses due to theft and sabotage in 2019.

NEITI further reported that “Total Premium Motor Spirit, PMS, imported in 2019 was 20.603 billion litres. 330,362,020 litres of the PMS valued at N44.03 billion ($143.694 million using N306.42/USD) was lost to vandalism and leaks of the product pipelines across the country”.

On gas production, the NEITI report showed that 3,047,507.32mmscf was produced in 2019. This represents an increase of 4.8% when compared to the 2,909,143.56mmscf reported in 2018. In addition, $247.794 million was realized from gas sales for the year under review.

The 2019 oil and gas report also explained that the total cash call for 2019 was $5.512 billion (US$2.898 billion and N797.324 billion). There was an outstanding Cash-call legacy liability of $1.900 billion as at 31st December 2019.

NEITI also reported that the sum of $896.891 million was recorded as social expenditure in 2019 made up of non-mandatory contributions of $81.297 million (9.06%) and mandatory contributions of $815.594 million (90.94%).

“The mandatory contributions consisted of the 3% levy to the Niger Delta Development Commission amounting to $721.275 million and 1% levy to the Nigeria Content Development Monitoring Board totaling $94.319 million. The non-mandatory contributions are various payments voluntarily made by the companies to their host communities for the provision of social amenities, scholarships etc”.

NEITI further disclosed that the total number of employees in the oil and gas sector in 2019 were 18,856 with 82 percent of these numbers male while 18 percent were female.

“The top management accounted for 10 percent, middle management, 47 percent and lower-level staffs, 43 percent”, the report added.


Leave a Comment

To leave a comment anonymously, simple write your thoughts in the comments box below and click the ‘post comment’ button.