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$15.4b lost to oil production shortfalls in 2022

Nigeria’s oil production averaged 1.34 million barrels per day in the first 10 months of 2022 against the 2022 Budget benchmark of 1.88 million barrels per day, costing the nation about 161.58 million barrels in lost production.

At an average crude oil price of $95 per barrel, it means the country lost about $15.35 billion in estimated earnings.

Latest data by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, showed that total oil production for the first ten months was 409.94 million barrels against the budget provision of 571.5 million barrels.

The data also showed that oil production fell in the first 10 months of 2022 by 21.37 percent when compared to 497.55 million barrels of oil produced over a similar period in 2021.

 

According to the Budget Office, Gross Oil Revenue amounting to N2,172.35 billion was collected in the first half of 2022 as against N4,684.98 billion prorate budget projection for the period. This denotes a decrease of N2,512.63 billion (53.63 percent) below the 2022 half year budget estimate.

 

The agency stated that it was, however, an increase of N272.56 billion (14.35 percent) above the actual half year gross oil revenue performance reported in 2021. A breakdown of the revenue by sub-head showed that only Crude Oil and Gas Sales of N489.38 billion surpassed its half year projection of N437.03 billion by N52.35 billion (11.98 percent).

 

It stated that other Oil Revenue items fell below their respective half year projections. Petroleum Profit and Gas Taxes of N909.56 billion, Royalties (Oil & Gas) of N750.93 billion, Concessional Rentals of N1.88 billion, Gas Flared Penalty of N39.19 billion, Incidental Oil Revenue (Royalty Recovery & Marginal Field Licenses) of N22.04 billion and Miscellaneous (Pipeline fees etc.) of N7.94 billion fell below their half year projections of N2,786.15 billion, N1,277.0 billion, N3.21 billion, N55.27 billion, N97.54 billion and N28.78 billion by N1,876.59 billion (67.35 percent), N526.07 billion (41.20 percent), N1.32 billion (41.26 percent), N16.08 billion (29.09 percent), N75.51 billion (77.41 percent) and N20.84 billion (72.40 percent) respectively.

 

Nigeria earned $741bn in 22 years – NEITI

 

The Nigeria Extractive Industries Transparency Initiative, NEITI, has disclosed that Nigeria earned 741.48 billion dollars from oil and gas between 1999 and 2020.

 

This was as it maintained that the successful implementation of the Petroleum Industry Act, PIA, remains inviolate for increasing the nation’s oil revenues.

 

The Executive Secretary, Dr. Orji Ogbonnaya Orji, made this known during a stakeholders’ engagement forum on the implementation of the Petroleum Industry Act, in Abuja.

 

He said NEITI had so far conducted and published 25 cycles of audit reports in the oil and gas sector, spanning the years 1999-2020.

 

According to him, NEITI has conducted and published twenty-five (25) cycles of audit reports in the oil and gas sector, covering the period 1999-2020.

 

“From the report, a total of $ 741.48 was recorded as revenue earnings to government coffers from the sector. The 2021 oil and gas sector audit is currently ongoing and will soon be released.

 

“Besides, NEITI reports have led to the recovery of several billions of dollars by the government from companies operating in the sector. Recommendations of our reports are also triggering huge reforms in the sectors, one of which is the PIA we are discussing here today.

 

“Let me use this medium to inform our stakeholders that considering the emerging issues in the global EITI, and the NEITI’s obligation under the PIA, the agency is currently working to review its enabling law to accommodate these new developments”, he added.

 

Orji said NEITI was embarking on an expansion of its operations to support the government’s revenue growth plan.

 

“This is guided by a five-year strategic plan (2022-2026) which will enable the agency to establish a presence and operate at sub-national levels to support the government’s revenue growth plan and resources mobilisation,” he said.

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