Market News

BY  Success Nwogu

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A new report released by the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that Nigeria’s earnings from oil dropped by nine per cent from $18.106 billion to $16.467 billion in one year.

According to the breakdown, while the country recorded $18.106 billion in 2022, it, however, witnessed a decline, earning $16.467 billion the following year, translating to a nine per cent reduction. These are according to the 2022/2023 oil and gas industry report, presented by the agency yesterday in Abuja.

The report also showed that the nation’s oil production increased from 490.94 million barrels in 2022 to 537.57 million barrels, in 2023, which is an increase of 9.5 per cent.

According to the report, the nation’s highest production volume in 10 years was 798.54 million barrels in 2014, while the lowest was 490.94 million barrels in 2022.

The report further showed that the country had a total loss of 7.68 million barrels of crude oil in 2023 due to theft and measurement errors, which is a significant reduction by 79 per cent from the 36.69 million barrels lost in 2022.

It also revealed that 153.44 million barrels of crude oil production were deferred in 2023. NEITTI report also showed that a total of 23.54 billion litres of fuel (Premium Motor Spirit) were imported into the country in 2022, while 20.28 billion litres were imported in 2023 which is a reduction of 3.25 billion litres, or a 14 percent fall, owing to the fuel subsidy removal.

The report said: “A detailed 10-year trend analysis (2014–2023) shows that the highest annual PMS importation into the country, 23.54 billion litres, was recorded in 2022, while the lowest, 16.88 billion litres, was recorded in 2017.

A total of N15.87 trillion was claimed as under recovery/price differentials between 2006 and 2023, with the highest amount, N4.714 trillion, recorded in 2022.”

It stated that oil companies’ liabilities to the Federation increased to $6.175 billion as of June 2024, according to an audit of the petroleum industry by NEITI.

According to the report, the liabilities include $6.071 billion and N66.4 billion in unpaid royalties and gas flare penalties owed to the NUPRC by August 31, 2024.

It added that there were outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT owed to the Federal Inland Revenue Service (FIRS) amounting to $21.926 million and N492.8 million as of June 2024. Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, stated that the preparation of the report followed a meticulous and transparent process in line with global Extractive Industries Transparency Initiative (EITI) standards.

He said: “A rigorous, multi-stakeholder approach was adopted, involving extensive collaboration with government agencies, extractive companies, civil society, and indigenous consultants.