The Nigeria Extractive Industries Transparency Initiative (NEITI) audit reveals that oil companies owe the Federal Government $6.175 billion in unpaid royalties and taxes.
The report, presented in Abuja on Friday, shows that $6.071 billion and ₦66.4 billion in unpaid royalties and gas flare penalties are owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as of August 31, 2024. Additionally, petroleum profit taxes, company income taxes, withholding taxes, and VAT owed to the Federal Inland Revenue Service (FIRS) total $21.926 million and ₦492.8 million as of June 2024.
The report also notes a 9% drop in industry revenue in 2023, with $16.467 billion recorded compared to $18.106 billion in 2022.
Furthermore, the industry lost 7.68 million barrels of crude oil in 2023 due to theft and measurement errors, a 79% decrease from the 36.69 million barrels lost in 2022. Companies like SPDC (39.13 million barrels), TEPNG (6.07 million barrels), and TUPNI (3.5 million barrels) were most affected by deferred production, which amounted to 153.44 million barrels in 2023. The report also revealed that the government paid ₦3.01 trillion in petrol subsidies in 2023, down from ₦4.71 trillion in 2022.
Additionally, 20.28 billion litres of Premium Motor Spirit (PMS) were imported in 2023, a 14% decrease from the 23.54 billion litres imported in 2022, following the removal of the subsidy.
“A detailed 10-year trend analysis (2014-2023) shows that the highest annual PMS importation into the country, 23.54 billion litres, was recorded in 2022, while the lowest, 16.88 billion litres, was recorded in 2017. A total of N15.87 trillion was claimed as under-recovery/price differentials between 2006 and 2023, with the highest amount, N4.714 trillion, recorded in 2022”.
During the report’s unveiling, the Secretary to the Government of the Federation, Sen. George Akume, reassured stakeholders that the government would continue to provide NEITI with the autonomy needed to carry out its mandate both to the country and the global Extractive Industries Transparency Initiative (EITI).
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