Over $23 billion earnings generated by oil and gas industry in 2021: NEITI

Over $23 billion earnings generated by oil and gas industry in 2021: NEITI

The government secretary of NEITI, Orji Ogbonnaya-Orji, mentioned this while presenting highlights on the 2021 oil and gas narrative unveiled on Monday in Abuja.

In accordance to Mr Ogbonnaya Orji, the earnings sources integrated gross sales of federation uncouth oil and gas, taxes, royalties, concession condominium, gas flare penalty, bonus and license expenses, and transportation expenses.

He mentioned that the entire earnings used to be additionally generated by way of dividends from NLNG, NDDC levy, NCDMB levy, Ness price, and miscellaneous profits.

In accordance to the NEITI boss, a entire of $13.2 billion greenbacks used to be remitted from the sum to the federation story.

He mentioned that the Nigeria Nationwide Petroleum Company, prior to its transition failed to remit about $2 billion to the federation story and a entire of $6.9 billion used to be deducted at FAAC.

Mr Ogbonnaya-Orji mentioned that while oil production for the year under evaluate stood at about 566,129 million barrels per day, gas production came at over 2,743,700 million long-established cubic toes per day.

He mentioned that the sector contributed a entire of 7.2 per cent to the nation’s Inferior Home Product (GDP) in 2021 with export contribution of 76.2 per cent.

The government secretary mentioned that the federal authorities paid about $3.087 billion in money calls as equity contributions while the outstanding money-call liabilities payable by the federation stood at about N330.007 billion.

On data of Truly helpful Dwelling owners (BO) of sources, Mr Ogbonnaya-Orji mentioned that about 69 companies possess been covered in the production of the narrative and possess disclosed some BO data by way of NEITI or CAC portal other than four companies.

On subsidy, the NEITI boss mentioned about $1,159 trillion used to be paid by the authorities as subsidy between March to December 2021.

“NEITI audits revealed that between 2006 and 2021, a entire of N8.149 trillion has been to this point expended on petroleum subsidy, now known as under-recovery,’ he mentioned.

On suggestions, he mentioned that in holding with the outstanding liabilities payable to FIRS and NUPRC, the NNPC and NPCD wants to be investigated while varied companies should always aloof promptly pay their liabilities.

Mr Ogbonnaya-Orji mentioned the narrative additionally beneficial that a varied investigation be instituted to set the utter of our non-operational refineries and price for money evaluate on the refineries wants to be implemented.

He extra reiterated the have to toughen remediation mechanisms and involve fair third parties to habits detailed investigations when wanted among varied suggestions.

Earlier, stakeholders in the oil and gas sector recommended NEITI on efforts against making sure transparency and accountability in the industry.

Representing the secretary to authorities of the federation, George Akume, his everlasting secretary on political and economic affairs, Esuabana Nko-Asanye, reiterated the importance of the narrative to economic pattern.

Mr Akume reaffirmed the federal authorities’s commitment to bolster and deepen the implementation of the EITI in Nigeria.

He then restated the need for security factors severely in the Niger/Delta to be tackled to decrease losses in the sector.

The community managing director of NNPCL, Mele Kyari, represented by his chief compliant officer, Nasir Usman, pledged the unreserved strengthen of NNPCL to NEITI to enable it procure its mandate.

Representing the minister, funds and economic planning, his everlasting secretary, Nebolisa Anako, mentioned the importance of data for economic planning.

He then reiterated the commitment of the authorities to the mandate of NEITI as the oil and gas sector used to be one in every of primarily the most famous sources of foreign exchange for the nation.

The chairman, Rental committee on petroleum, Hon. Ikenga Ugochinyere, called for the have to amend the NEITI Act and educated for extra authorities allocation to the initiative to enable it better assemble its mandate.

Mr Ugochinyere additionally pledged the commitment of the Rental to work against the implementation of the narrative that used to be unveiled at the moment.

Equally, the chairmen Senate committee on petroleum upstream, Etang Williams and the Senate Committee on oil and gas host communities, Benson Agadaga additionally expressed commitment to stand by NEITI in implementing the suggestions of the narrative.

The unveiling of the 2021 narrative, used to be attended by varied stakeholders and companions in the oil and gas sector in the nation.


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