Olufemi Adeyemi 

Oil companies' liabilities to the Federation Account have increased to $6.175 billion, as reported in an audit conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI). 

The detailed figures indicate that $6.071 billion and N66.4 billion are owed in unpaid royalties and gas flare penalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as of August 31, 2024. Furthermore, outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT owed to the Federal Inland Revenue Service (FIRS) total $21.926 million and N492.8 million as of June 2024.

The oil and gas industry report, unveiled yesterday in Abuja, also highlighted a 9% decline in industry revenue for 2023, with figures showing $16.467 billion compared to $18.106 billion in 2022. 

The NEITI report noted a total loss of 7.68 million barrels of crude oil in 2023 due to theft and measurement inaccuracies, marking a significant decrease of 79% from the 36.69 million barrels lost in 2022. Additionally, 153.44 million barrels of crude oil production were deferred in 2023, with companies such as SPDC (39.13 million barrels), TEPNG (6.07 million barrels), and TUPNI (3.5 million barrels) being the most impacted.

The report also revealed that the government disbursed N3.01 trillion as a petrol subsidy in 2023, a decrease from N4.71 trillion in 2022. It was noted that 23.54 billion liters of PMS (premium motor spirit) were imported into the country in 2022, while imports fell to 20.28 billion liters in 2023, reflecting a reduction of 3.25 billion liters, or a 14 percent decline, following the subsidy removal.

A comprehensive analysis of trends over the past decade (2014-2023) indicates that the peak annual importation of PMS into the country reached 23.54 billion liters in 2022, while the lowest figure was 16.88 billion liters in 2017. Between 2006 and 2023, a total of N15.87 trillion was reported as under-recovery and price differentials, with the highest recorded amount of N4.714 trillion occurring in 2022. 

During the unveiling of the report, the Secretary to the Government of the Federation, Sen. George Akume, assured stakeholders of the government's ongoing support for NEITI in fulfilling its mandate in alignment with the global Extractive Industries Transparency Initiative (EITI). 

Sen. Akume stated, “As the Chairman of the NEITI Board, I am here to emphasize the Federal Government’s commitment to NEITI’s independence. My position as Chairperson reflects the significance the government places on NEITI, and it also highlights our dedication to ensuring that NEITI functions autonomously, free from interference, as required by EITI standards. It is crucial that we protect this independence with utmost care and diligence, allowing NEITI to operate without undue influence.”

Additionally, the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Olanipekun Olukayode, pledged to utilize the latest report to facilitate the recovery of all outstanding revenues from companies. He announced that the EFCC had recently recovered and remitted over N1 billion to the Federal Government from NEITI’s previous reports.

Earlier, Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, clarified that the report was prepared through a thorough and transparent process, adhering to the standards set by the global Extractive Industries Transparency Initiative (EITI).

A comprehensive, multi-party strategy was implemented, which included significant cooperation among government bodies, extractive industry firms, civil society organizations, and indigenous advisors. He emphasized that all data was gathered, verified, and harmonized in an open and transparent manner.