Nigeria loses 54.6% of its potential oil revenue in 2015 – NEITI

NNPC begins oil exploration in Gongola Basin


NEITI said this in Abuja in its audit-covered operations in the country’s oil and gas industry for 2015.

According to the report, the drop in prices of oil in the international market from 101.91 dollars in 2014 to 52.16 dollars in 2015 is a major factor.

The report also disclosed that within that period, 597.8 million dollars was taken from the 4.37 billion dollars that was earmarked and remitted into the Joint Venture (JV) operations cash call account.

It said out of the account, maintained by the country to fund oil production in collaboration with International Oil Companies (IOCs), money was paid to the National Intelligence Agency, the Nigerian Navy and a host of others.

The report also highlighted a couple of other findings, including the losses recorded by Nigeria from oil theft, irregular product swap arrangements, and transactions the NEITI considered uneconomical.

It stated that revenues from sales of oil and gas plunged from 54.5 billion dollars in 2014 to 24.8 billion dollars in 2015.

It explained that as at 2015, the total outstanding revenue owed the country from the sector was $3.7 billion and N80 billion.

It said losses incurred during the period were $2.2 billion and N60 billion and un-reconciled revenues amounted to N317 billion.

The Executive Secretary of NEITI, Waziri Adio, said in a statement said, “Beyond providing a snapshot of what transpired in 2015, this report reveals money to be recovered.

“It reveals also leakages to be blocked, and urgent reforms to be undertaken. The most critical take-away is the need to expedite, expand and sustain reforms in this still critical sector of national life.”

The report stated that the 54.6 per cent decline in oil revenues suffered by the country was due to drastic reduction in the unit price of crude oil in the global market, in spite of recording just about 2.7 per cent fall in oil production.

It noted the decline in oil production from 798 million barrels in 2014 to 776 million barrels in 2015 and oil theft and militancy.

It noted that of the 780 million barrels of oil that was lifted in 2015, companies lifted 467 million barrels, while the NNPC lifted 313 million barrels.   

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