The Nigerian Extractives Industries Transparency Initiative has reported that the entire outstanding financial liabilities in the oil and gas sector owed to the Federation amount to a sizeable $8.264 billion, which is a discovery of the utmost importance.
According to The Punch, a significant percentage of $13.591 million of this astonishing amount was designated as revenues payable to the Federal Inland Revenue Service.
On September 18, NEITI presented this significant data at the introduction of the 2021 oil and gas industry reports.
The article went on to note that the Nigerian Upstream Petroleum Regulatory Commission had $8.251 billion in uncollected taxes as of July 31, 2023, a figure that was true as of December 31, 2022.
Alarmingly, the Nigerian National Petroleum Company Limited is responsible for almost 80% of this huge sum, underscoring the heavy burden of duty placed on one organization.
The study included 69 companies’ payments, 13 government agencies, NNPCL, Nigeria LNG, and Nigeria Sao Tome Joint Development Authority in a thorough and comprehensive reconciliation exercise.
23 different revenue streams were covered by this thorough strategy. It was noteworthy to learn that Lekoil Limited paid more than $7.76 million while not providing any reconciliation data.
The NEITI’s Executive Secretary, Dr. Ogbonnaya Orji, emphasized the report’s crucial contribution to helping governments at all levels increase income streams and reduce poverty through vigorous resource mobilization initiatives.
The information presented in this study stands out as a crucial tool for guiding the country toward solid financial planning and accountable resource management.
In order to clarify liabilities and verify data, NEITI also demanded a comprehensive audit of financial transactions involving PMS subsidies between the NNPCL and the Federation.
According to the NEITI study, the amount of crude oil lost due to theft and sabotage decreased in the year that was highlighted, going from 39.08 million barrels in 2020 to 37.57 million barrels in the year that followed, 2021.
However, a significant drop in crude oil output during that time period, which had an effect on a total of 29 enterprises working in the field, is intimately connected to this numerical decline.
Nigeria earned $23.046 billion from the extractive industry in total in 2021, up 13% from the $20.43 billion it brought in in 2020, according to the NEITI report.