A recent report from the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that oil companies owe the Federal Government a staggering $6.175 billion in unpaid royalties and taxes. This figure was confirmed during the presentation of the NEITI audit of the petroleum sector in Abuja.
As of August 31, 2024, the report indicates that the unpaid royalties and gas flare penalties owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) amounted to $6.071 billion and ₦66.4 billion. Additionally, outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT owed to the Federal Inland Revenue Service (FIRS) totaled $21.926 million and ₦492.8 million as of June 2024.
The audit also highlighted a 9 percent decline in industry revenue for 2023, with total figures showing $16.467 billion, down from $18.106 billion in 2022. Notably, the report documented a significant loss of 7.68 million barrels of crude oil in 2023 due to theft and measurement inaccuracies, a sharp 79 percent decrease from the 36.69 million barrels lost in 2022. Furthermore, 153.44 million barrels of crude oil production were deferred in 2023, affecting companies like SPDC, TEPNG, and TUPNI.
In terms of government spending, ₦3.01 trillion was disbursed as a petrol subsidy in 2023, a reduction from ₦4.71 trillion in the previous year. The report also indicated that PMS (premium motor spirit) imports decreased from 23.54 billion liters in 2022 to 20.28 billion liters in 2023, reflecting a 14 percent decline following subsidy removal.
During the report unveiling, Sen. George Akume, Secretary to the Government of the Federation, assured stakeholders of the government’s commitment to NEITI’s independence, emphasizing the importance of its role in upholding transparency in the extractive sector.
Additionally, the Chairman of the Economic and Financial Crimes Commission (EFCC), Olanipekun Olukayode, vowed to leverage the findings from the report to recover outstanding revenues owed by the companies, noting that the EFCC has previously recovered over ₦1 billion based on NEITI’s reports.
News Editor