Nigeria rakes in $418bn from oil and gas sector, says NEITI

Chinazor Megbolu

The Nigeria Extractive Industries Transparency Initiative (NEITI) has said that Nigeria raked in a total of $418.54 billion revenue from the oil and gas sector between 2010 and 2019.

The organisation disclosed this in the 2019 oil and gas industry audit report in Abuja, also said the highest revenue flow of $68.442 billion was recorded in 2011.

The report further showed that the lowest revenue flow of $17.055 billion was recorded in 2016.

The Head of Communication and Advocacy, NEITI, Mrs. Obiageli Onuorah, noted that Nigeria earned a total sum of $34.22 billion from the oil and gas sector in 2019, which represents an increase of 4.88 per cent compared to the $32.63 billion revenue recorded in year 2018.

The total crude oil production in 2019, she said was 735.244 million barrels, which indicates an increase of 4.87 per cent over the 701.101mmbbls recorded in year 2018.

For the earnings in 2019, Onuorah buttressed that the report showed that $18.90 billion was paid by firms, while flows from the federation sales of crude oil and gas accounted for $15.32 billion.

“A sum of N518.074 billion was also said to have been spent by the federal government through the Nigerian National Petroleum Corporation (NNPC) in 2019.

“Production sharing contracts, PSCs, contributed the highest volumes of 312.042mmbbls followed by 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,” the report said.

The report maintained that the value of the 2019 domestic crude oil earnings was N2.722 trillion out of which N518.074 billion was deducted for petroleum motor spirit (PMS), also known as petrol, under-recovery by the NNPC.

According to the report; “this figure was N213.074 billon above the approved sum of N305 billion for under-recovery in 2019. Similarly, the sum of N126.664 billion 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, however, stated that N31.844 billion was deducted for crude and product losses due to theft and sabotage in 2019.

The report also maintained that on gas production, 3,047,507.32 mmscf was produced in 2019, representing an increase of 4.8 per cent compared to the 2,909,143.56 mmscf recorded in 2018.
It further pointed out that $247.794 million was realised from gas sales for the year under review.

“Total Premium Motor Spirit, PMS, imported in 2019 was 20.603 billion litres. 330,362,020 litres of the PMS valued at N44.03 billion ($143.694 million using N306.42/USD) was lost to vandalism and leaks of the product pipelines across the country,” the report said.