NEITI: Oil Firms and Agencies Owe FG $9.85 Billion in Unremitted Revenue

The Nigeria Extractive Industries Transparency Initiative (NEITI) recently announced its oil and gas report. The data showed the total unremitted revenues to the federation by some government companies and agencies in the oil and gas sector in 2021, which increased to $9.85 billion.

The report was presented by the Executive Secretary of NEIT, Dr Ogbonnaya Orji, who stated that the data released by the commission had all updates on the financial liabilities of the NNPC and some companies in the sector of the federation.

The report showed that Nigeria generated a total revenue of $23.046 billion from the sector in 202, which was a 13% increase from the previous year, which generated a revenue of $20.43 billion.

A breakdown review of the revenue shows that over $8.67 billion, or 37.6% of the revenue, was gotten from the sales of crude oil and gas, while $13.36 billion, or 58.02% of the revenue, was gotten from taxes and other revenue flows, and $1.01 billion, or 4.38%, was used to settle payments to sub-national entities.

From the analysis shown in the released data of the NEITI, the NNPC's unremitted revenues and quasi-fiscal expenditure settled at $1.95 billion, or 8.47%, and $6.93 billion, or 30.08%, respectively.

Also, transfers to the federation cost $13.2 billion, or 57.27%, while sub-national payments cost $963.63 million, or 4.18%.

The report partly reads,

• The quasi-fiscal expenditure of $6.931 billion (equivalent to N2.651 trillion) was deducted from the federation’s revenue before remittance without appropriation by the National Assembly.

• A breakdown of the $6.93 billion deductions showed payments of $3.52 billion, or 15%, for Joint Venture Cost Recovery and $3.031 billion (about N1.16 trillion), or 13.15%, for product subsidy/value loss.

• Other deductions are $258.43 million for government priority projects; $75.51 million for pipeline maintenance and holding costs; and $42.40 million for crude oil and product losses.