Home Breaking News NEITI: $34.28b revenue accrued from oil, gas in 2019

NEITI: $34.28b revenue accrued from oil, gas in 2019

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By Muyiwa Lucas and Ambrose Nnaji 

The Federal Government raked in $34.28 billion from the oil and gas sector in 2019.

This was made by the Nigeria Extractive Industry Transparency (NEITI), while presenting its 2019 audit report in Lagos on Tuesday.

Its Executive Secretary, Dr. Orji Ogbonnaya Orji, noted that crude oil sale alone accounted for $7.011 billion while receipts in gas sale amounted to $1.476 billion. He added that $8.487 billion of the total receipt came from the sale of oil and gas.

He explained that of the 88 companies and the NLNG, 82 companies made payments in 2019. The remaining seven companies did not make payments because they were not in operations as at that time.

“Furthermore, a total of nine government entities that directly collect revenue and participate in the industry are covered in the report.

“In the report, government receipts were $34.28 billion in total revenue from the oil and gas sector – out of which company level financial flows by revenues streams was $18.96 billion and flows from Federation sales of crude oil and gas was $15.32 billion.

“Out of the 34. 281 billion total government revenue from the sector; $18.14 billion (52.92 per cent) was transferred into the Federation account, $6.55 bilion (19.11 per cent) into the Cash-cal account and $5.58 billion (16.28 per cent) into NNPC designated accounts.

“Furthermore, $2.82 billion (8.24 per cent) was transferred into third parties’ project financing accounts while $1.18 billion (3.45 per cent) were subnational transfers.

Sub-national transfers are payments made to state IRS, NDDC, Nigerian Content Development and Minister Biard (NCDMB), and Federal ministry of Finance (FMF), in addition to $5.58 billion in NNPC designated accounts, $229.449 million (N70.21 billion) was downstream deductions on orior year domestic sales.

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