Nigeria earned $55.5 billion from the oil and gas sector and N55.82 billion from the solid minerals sector in 2014, the latest audit reports of the Nigeria Extractive Industries Transparency Initiative (NEITI) have revealed.
The NEITI 2014 audit reports also show that a total of $4.7 billion and N318.2 billion that should have gone to the Federation Account were not remitted by National Petroleum Development Company (NPDC) and its parent company, Nigerian National Petroleum Corporation (NNPC). Losses from crude-for-product swap and Offshore Processing Arrangements (OPA) were put at $198.7 million in 2014.
At the close of the 2014 audits, NPDC had not paid outstanding $1.7 billion for eight OMLs under Shell Joint Venture divested to it by NNPC. NPDC had also not paid for the four OMLs under the NAOC Joint Venture divested to it by NNPC. Those four assets were recently valued by Department of Petroleum Resources (DPR) at $2.25 billion; NPDC had sought clarification for the basis of the valuation.
According to the reports, the total revenue flows for the oil and gas sector fell from $58.07 to $55.5 billion between 2013 and 2014, a decline of about 5 per cent. However, revenue flow for the solid minerals sector in 2014 showed a marked improvement over the previous year, with a 48 per cent rise from N37.676 billion of 2013 to N55.8 billion in 2014.
Forty-one oil and gas companies and 16 government agencies were audited for the 2014 Oil and Gas Audit cycle. These were the producing companies that made material payments of $5 million and above to the federation in 2014 and the government agencies that received funds on behalf of the federation.
One hundred and nine producing assets were active in the year, comprising of 59 Joint Venture (JV) licences; 26 Sole Risk and Marginal Field Operating (SRMF) licences; 23 Production Sharing Contract (PSC) licences; and one Service Contract (SC) licence.
The 2014 oil and gas audit, which was conducted by SIAO and Co., a Nigerian accounting and auditing firm, also reveals the following: 22 billion litres of petroleum products were imported as against the 20 billion litres imported in 2013, with 950 million litres of the products locally produced in 2014 as against 2.6 billion litres locally produced in 2013; N1.2 trillion was processed as subsidy claims in 2014 as against the N1.3 trillion processed for subsidy in 2013; and N426.6 billion was distributed in 2014 under the Subsidy Re-investment Programme (SURE-P), same as the SURE-P figure for 2013.
Other major highlights of the 2014 Oil and Gas Audit report include the following:
N68.28 billion was the outstanding liabilities from NPDC for PAYE (Pay as You Earn), WHT (Withholding Tax), EDT, VAT (Value Added Tax) and NDDC (Niger Delta Development Corporation) Levy while $3.3 billion was the outstanding liabilities for Royalty Oil, Royalty Gas, PPT and Gas Flare Penalty.