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Market Digest Nigeria

Economy

Nigeria made $34.22bn from oil in 2019 – NEITI

Nigeria earned $34.22bn from the oil and gas sector in 2019, the Nigeria Extractive Industries Transparency Initiative (NEITI) said on Thursday.

neiti

It said this in its 2019 Oil and Gas Industry Audit report released in Abuja, adding that the $34.22bn revenue represented an increase of 4.88 per cent over the $32.63bn garnered from the sector in 2018 according to NEITI.

A breakdown of the earnings showed that payments by companies accounted for $18.90bn, while flows from federation sales of crude oil and gas accounted for $15.32bn.

The report showed that 10-year (2010-2019) aggregate financial flows from the oil and gas sector to government amounted to $418.54bn, with the highest revenue flow of $68.44bn recorded in 2011, while the lowest revenue flow of $17.06bn was recorded in 2016.

According to Nigeria Extractive Industries Transparency Initiative (NEITI), the total crude oil production in 2019 was 735.24 million barrels, representing an increase of 4.87 per cent over the 701.101 million barrels recorded in 2018.

Production Sharing Contracts contributed the highest volumes of 312.042 million barrels followed by Joint Venture and Sole Risk, which recorded 310,284 million barrels and 89.82 million barrels respectively.

Others include Marginal Fields and Service Contracts which accounted for 21,762 million barrels and 1,330 million barrels respectively.

The report also showed that total crude oil lifted in 2019 was 735.66 million barrels, indicating a 4.93 per cent increase to the 701.09 million barrels recorded in 2018, with companies lifting 469.01 million barrels, while 266.65 million barrels was lifted by the Nigeria National Petroleum Corporation on behalf of the federation.

Analysis of crude oil lifted by NNPC showed that 159.41 million barrels were for export, while 107.239 million barrels were for domestic refining.

The report stated that 97 per cent of the volume for domestic refining (104.475 million barrels) was utilised for the Direct Sale Direct Purchase programme, while the remaining three per cent (2.764 million barrels) was delivered to the refineries.

NEITI reported that the value of the 2019 domestic crude oil earnings was N2.72tn, adding that of this figure, N518.07bn was deducted for Petroleum Motor Spirit under-recovery by the NNPC.

This figure was N213.07bn above the approved sum of N305bn for under recovery in 2019.

Similarly, the sum of N126.66bn was incurred by the corporation as costs for pipeline repairs and maintenances which showed a difference of N96.38bn from the approved sum of N30.29bn for the purpose.

The report also pointed out that N31.84bn was also deducted for crude and product losses due to theft and sabotage in 2019.

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