The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that companies’ liabilities to the Federation as of December 31st 2020 was at N1.32 trillion or $3.17 billion compared to the N2.6 trillion owed in 2019.
This is the latest oil and gas industry report according to a NEITI press release signed by Obiageli Onuorah, the Head Communications & Advocacy of the agency.
The oil and gas companies’ indebtedness profile to the federal government was released at a public presentation of the agency’s industry reports on oil, gas, mining and Fiscal Allocation and Statutory Disbursement in Abuja.
Dr. Orji Ogbonnaya Orji, NEITI’s Executive Secretary said the number of defaulting companies dropped from 77 as reported in 2019 to 51 in 2020.
Orji said the debts were collectable revenues accruable to the Federation by the Department of Petroleum Resources and the Federal Inland Revenue Service.
NEITI in the report named Royalty oil, Royalty gas, Concession rentals, Petroleum Profit Tax, Company Income Tax, Education Tax, Value Added Tax, Withholding Tax among others as specific revenue streams responsible for the liabilities.
”The disclosure seeks to draw the attention of the oil and gas companies to their obligations to remit all revenues due to government, especially at this time that government is in dire need of revenues to rebuild the nation’s infrastructure and improve the investment climate in the country, Dr Orji said.
The 2020 oil and gas report also revealed that Nigeria earned $20.43 billion from the oil and gas sector in 2020, representing a decline of 40% compared to the 34.22billion realized from the sector in 2019.
The report also disclosed that $14.65 billion which represents 71.17% of the total earnings in 2020, was remitted to the account, while total aggregate financial flows from the oil and gas sector to the government in ten years (2011-2020) was $394.029 billion.
The NEITI report also gave updates on the status of crude oil production in the country for 2020, indicating a deep in rates when compared to 2019.
It said ”the total crude oil production in 2020 was 646.7mmbbls, which is 12% lower when compared to the 735.24 mmbbls produced in 2019.
”Out of the above total production in 2020, 648.48mmbbls were lifted, and this was 11.85% lower than the 735.66mmbbls lifted in 2019.