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NEITI Reels Out Revenue Losses In Oil Sector

October 30, 2018

In his address, Waziri Adio, NEITI Executive Secretary, said unremitted funds included earnings from oil and gas producing companies worth N5.2 billion, $152.69 million and another $498.6 million in revenue from companies involved in offshore processing contracts.

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At a conference held in Abuja on Monday, the Nigerian Extractives Industry Transparency Initiative (NEITI) accused the Nigerian National Petroleum Corporation (NNPC), a subsidiary, Nigerian Petroleum Development Company (NPDC) and several oil companies of withholding funds from the country’s coffers.

In his address, Waziri Adio, NEITI Executive Secretary, said unremitted funds included earnings from oil and gas producing companies worth N5.2 billion, $152.69 million and another $498.6 million in revenue from companies involved in offshore processing contracts.

He claimed NPDC, which is the country’s oil exploration arm and NNPC, are yet to remit $2.38 billion and N51.95 billion as well as $19.04 billion and N424.57 billion respectively.

According to Adio, the total loss to the federation arising from crude oil production, processing and transportation stood at $3.038 billion and N60.997 billion.

Unreconciled differences arising from the allocation, sale and remittance of proceeds from domestic crude allocated to NNPC amounted to N317.475 billion, the NEITI boss explained.

He lamented that the regulations establishing the agency did not empower it to prosecute and called on stakeholders to address challenges of remediation.

Topics
Oil