How FG earned N4.3trn from oil in 2021

The Nigerian Extractive Industries Transparency Initiative estimates that the Federal Government received N4.3 trillion from the oil and gas industry in 2021.

The Punch reported that this information was found in the “Oil and Gas Industry Report for 2021” by NEITI.

This accounts for around 40% of overall revenue now, down from 51% in 2020, the research states.

It revealed that in 2021, the Federal Government earned a total of N10.7 trillion.

The increase in oil revenue was attributable to the price of crude rising to $66.97 per barrel in 2021 from $41.65 per barrel the year before.

According to the agency, domestic crude oil sales generated $5.8 billion in revenue during the reviewed year, while export crude oil sales generated an overall total of roughly $5.4 billion. Equity petrol sales generated $648 million in revenue during the same period.

For the records of the Federal Inland Revenue Service and the now-defunct Department of Petroleum Resources, total crude oil lifting and feedstock sales in 2021 came to nearly $4 billion.

According to the NEITI report, Nigeria’s oil and gas operations brought in a total of $20.4 billion in income in 2020, a 40% drop from the $34 billion brought in in 2019.

Additionally, figures from the National Bureau of Statistics revealed that in 2022, crude oil sales would bring in N21tn ($45.6bn) for the nation.

NEITI’s Executive Secretary, Orji Ogbonnayan, stated the contribution of oil and gas sales in the Gross Domestic Product fell to 3.5% from 11.4% in 2022 while delivering the welcome address at the report launch on Monday.

He noted that as of July 2023, revenue from crude oil sales was N2.3 trillion.

Following the publication of the NEITI report, the executive secretary of the Nigerian Content and Development Monitoring Board, Simbi Wabote, asked the National Assembly and the Civil Society Organisations to hold the government accountable.

Additionally, figures from the National Bureau of Statistics revealed that in 2022, crude oil sales would bring in N21tn ($45.6bn) for the country.

“Do not play politics with the report,” he said, “because there is a lot of data and recommendations we can use in the report to find solutions to the problems bedeviling the oil and gas sector, and this I can assure you would catapult the economy to the next level.”

The Senate Committee on Oil & Gas Upstream’s Ateng Williams noted that the House’s top goal right now was to look into oil theft, which has cost the country a sizable amount of money over the years.

“We deplore the decline in oil theft throughout the years. In order to hold offenders accountable, the Senate promises to collaborate with NEITI,” he stated.