The Nigerian Extractive Industries Transparency Initiative has stated that the Nigerian National Petroleum Company Limited failed to pay the Federal Government roughly N2.8 trillion in taxes in 2022.
According to NEITI’s recently released “2021 Oil and Gas Industry Report,” of the approximately N3.5 trillion ($8.25 billion at the 2022 exchange rate of N448 to $1), that NNPCL owed the Nigerian Upstream Petroleum Regulatory Commission during the period under review, more than 80% (N2.8 trillion) of the uncollected tax revenues remained unpaid.
At the unveiling of the report, the Federal Government’s Secretary to the Government of the Federation, Senator George Akume, in conjunction with the Permanent Secretary of Political and Economic Affairs, Esuabana Nko, underlined the Federal Government’s commitment to support and deepen the implementation of the of recommendations of the Extractive Industries Transparency Initiative in Nigeria.
The audit also detailed how, in 2021, the state oil company failed to send FG more than N4 trillion.
The report states that the unremitted amount included $871 million in unremitted domestic crude oil sales, $279 million in trial marketing revenue earned by the Federation under the First Exploration and Production Joint Venture, $8 million from Oil Mining Licence 116 operated by a subsidiary of NNPCL, the Nigerian Petroleum Development Company, and about $46 million in unremitted balance from the domestic petrol proceeds account as of December 31, 2021.
While crude oil sales that were exported brought in an overall total of roughly $5.4 billion, domestic crude sales brought in $5.8 billion, and equity petrol sales brought in $648 million in 2021.
The total lifting of crude oil and feedstock sales for the accounts of the Federal Inland Revenue Service and the defunct Department of Petroleum Resources in 2021 amounted to a total sum of about $4bn, the report said.
