OIL AND GAS: NIGERIA GENERATES $34.28BN IN 2019–NEITI
Nigeria Extractive Industry Transparency (NEITI )on Tuesday in Lagos said the Federal Government generated $34.28 billion from oil and gas sector in 2019.
Presenting the 2019 audit report to the media and civil Society organisations (CSO) Executive Secretary of the agency, Dr. Orji Ogbonnaya Orji,also disclosed that the $8.487 billion of the total receipt originated from the sales of oil and gas.
According to him,crude oil sale alone accounted for $7.011 billion while receipts in gas sale amounted to $1.476 billion.
He told newsmen that the report covers a total of eighty eight (88) companies and the NLNG, of which eighty two (82) comoanies made payments in 2019,while the remaining seven (7) companies did not make payments because they were not in operations, he said.
He said a total of nine (9) government entities that directly collect revenue and participate in the industry are covered in the report.
He added that government receipts were $34.28 billion in total revenue from the oil and gas sector – out of which company level financial flows by revenues streams was $18.96 billion and flows from Federation sales of crude oil and gas was $15.32 billion.
According to him:“Of the 34. 281 billion total government revenue from the sector; $18.14 billion (52.92%) was transferred into the Federation account, $6.55 bilion (19.11%) into the Cash-cal account and $5.58 billion (16.28%) into NNPC designated accounts.
“Furthermore, $2.82 billion (8.24%) was transferred into third parties’ project financing accounts wwhile $1.18 billion (3.45%) were subnational transfers.
Subnational trasfers are payments made to state IRS, NDDC, Nigerian Content Development and Minister Biard (NCDMB), and Federal ministry of Finance (FMF), in addition to $5.58 billion in NNPC designated accounts, $229.449 million (N70.21 billion) was downstream deductions on orior year domestic sales.
“The Federation achieved a 5.07 % revenue increase from $32.63 billion in 2018 to $34.28 billion in 2019.
He said to date,the agency has conducted twelve cycles of audits in the oil and gas sector covering the periods 1999-2019.
He said the agency also conducted the first solid minerals sector audit which covered the periods 2007 to 2010,adding that it has conducted ten cycles of audit in the sector.
“NEITI has also conducted two cyckwa of audits that focus on the allocation,statutory disbursement and utilization of revenues from the federation account to the three tiers of government.These reports were courageous,incisive and comprehensive and placed in the public domain for Nigeri canans to use to hold the government and companies to account”, he added