The federal government earned a total sum of $34.22bn (N14 trillion) from the oil and gas sector in 2019, a financial report by the Nigeria Extractive Industries Transparency Initiative (NEITI), has revealed.
According to the report, the revenue generated from the oil and gas sector in 2019 accounted for 4.88% increase compared to the $32.63 billion (N13.37trn) revenue gained from the sector in 2018.
Futher breakdown of the earnings revealed that payments from companies accounted for $18.90 billion (N7.7trn), while flows from the federation sales of crude oil and gas accounted for $15.32 billion (N6.3trn).
The data is contained in the 2019 oil and gas industry audit report made available by the NEITI.
Accoding to the audit report, federal government earned an aggregated revenue of $418.544 billion (N171.60 trn) in ten years (2010 to 2019).
The report also revealed that the government earned the highest revenue of $68.442 (N28trn) in 2011, under the period in review, while the lowest revenue flow of $17.055 (N6.9 trn) was recorded in 2016.
According to NEITI, the total crude oil production in 2019 stood at 735.244mmbbls, accounting for an increase of 4.87 percent compared to the 701.101mmbbls recorded in 2018.
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.
Production sharing contracts (PSCs) contributed the highest volumes of 312.042mmbbls out of the 735.661mmbbls total crude oil lifted, while 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.
Also, breakdown of the crude oil lifted by NNPC showed that 159.411mmbbls out of the 266.650mmbbls was for export, while the remaining 107.239mmbbls was for domestic refining.
In addition, 104.475mmbbls out of the domestic refining was utilised for the Direct Sale Direct Purchase (DSDP) programme, accounting for 97percent of the volumes for the domestic refining, while the remaining 3percent (2.764mmbbls) was delivered to the refineries.
Furthermore, the audit report of the NEITI disclosed 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 N213.074 billon above the approved sum of N305billion for under recovery in 2019.
N126.664billion was incurred by the Corporation as costs for pipeline repairs and maintenances which showed a difference of N96.378 billion from the approved sum of N30.287 billion for that purpose. The report also pointed out that N31.844 billion was also deducted for crude and product losses due to theft and sabotage in 2019.
This is the 12th cycle of independent oil and gas industry audit exercise by the Nigeria Extractive Industries Transparency Initiative (NEITI) in line with the NEITI Act 2007 and Nigeria’s obligation to the global Extractive Industries Transparency Initiative (EITI).
The audit was also conducted by Adeshile Adedeji & Co. (Chattered Accountants), an indigenous accounting and auditing firm.