The NNPC Limited and 47 oil companies failed to remit to the federal government the sum of $8.265 billion revenue from oil proceeds, royalties and fines in 2021.

According to NEITI in its 2021 report, 47 oil companies owed the federal government the sum of $1.342 billion and NNPC Limited, $6.923 billion.

The collectible revenues were due to FIRS and NUPRC, NDDC levies, transportation revenue and other miscellaneous revenues.

As stipulated by the NEITI Act 2007, NEITI engaged the services of an Independent Administrator (IA) to conduct the annual audit of Nigeria’s oil and gas sector. 

This involves the reconciliation of payments made by companies with receipts of extractive revenues by government entities.

The report further shows that the total receipts from the 23 revenue streams of the nation’s oil sector was $23,046,088,000 in 2021.

ALSO READ:

• NNPC Ltd/Chevron JV Eye 165,000 bpd Production Target by Dec 2024
• China to establish mini-grid simulation, standardization centre in Nigeria
• Joint entry from UK based Olajide Otitoju, Meihong Wang, Eni Oko wins $100,000 Nigeria Prize for Science 2024
• NNPCL, Chinese firm to co-fund Gwagwalada IPP
• FG grants UTM Offshore license to construct first Floating LNG

Sixty-nine companies made payments for concession rentals, licenses, signature bonuses, royalty, and/or oil and gas taxes in 2021 were covered in this report.

A total of 69 companies, and 22 of the companies, with payments of over US$50m, which constituted 95.65% of all company’s payments were material for reconciliation.

Out of the 69 companies selected, Lekoil Limited did not submit any information to the IA for reconciliation but made payments. 

The total payments by Lekoil amounted to US$7,756,000, representing 0.03365% of the total revenue and thus considered non-material to this report.

Officially unveiling the report, the Executive Secretary, NEITI, Orji Ogbonnaya Orji, said the amount are collectible revenues due to the NUPRC and FIRS arising from NNPC and Companies in their 2021 operation. 

He said, “our concern is that the government is looking for moneyand therefore borrowing money. This report has showed us that we should look inward and collect what is due to us”.