Petrol importation declines by 14% in 2023, as oil companies owe FG over $6bn — NEITI Report
The latest report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed a 14 percent decline in petrol importation for 2023. A total of 20.28 billion litres of premium motor spirit (PMS) were imported this year, down from 23.54 billion litres in 2022.
This reduction of 3.25 billion litres follows the removal of fuel subsidies. A detailed 10-year trend analysis (2014–2023) shows that the highest annual PMS importation was recorded in 2022, while the lowest was in 2017, with 16.88 billion litres.
The report also disclosed that oil companies owe the Federal Government over $6.071 billion and N66.4 billion. This includes $6.049 billion in unpaid royalties and gas flare penalties due to the Nigerian Upstream Petroleum Regulatory Commission, which are expected to be collectible by August 31, 2024.
Further breakdowns reveal outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT owed to the Federal Inland Revenue Service, totaling $21.926 million and N492.8 million as of June 2024. Additionally, the report claims that N15.87 trillion was cited as under-recovery/price differentials from 2006 to 2023, with N4.714 trillion recorded in 2022 alone.
On crude production, fiscalized crude production stood at 537.571 million barrels in 2023, a 9.5percent increase from the 490.945 million barrels produced in 2022, following an 11 percent decline from 2021. Total crude lifting also increased by 11 percent to 534.159 million barrels in 2023, compared to 482.074 million barrels in 2022.
The report further highlights a significant drop in oil theft and crude losses, with 7.68 million barrels reported as either stolen or lost in 2023, a decrease of 79 percent from the previous year’s 36.69 million barrels.
In terms of overall revenue generation, the report indicated that material companies generated $21.415 billion (95 percent) in 2023, compared to $15.549 billion (96 percent) in 2022, with non-material companies contributing $1.238 billion (5 percent) this year.
NEITI’s independent report carefully reviewed all aspects of the oil and gas regulatory framework, including the legal and fiscal regime, the roles of government entities, and reforms under the Petroleum Industry Act (PIA) 2021. It also provided insights into property rights, beneficial ownership, and the transparency of contracts and licences.
Speaking at the public presentation in Abuja, Secretary to the Government of the Federation, Sen. George Akume, reaffirmed “the unwavering commitment of the Federal Government of Nigeria to the principles of the Extractive Industries Transparency Initiative (EITI). We consider the EITI not only as a global standard for promoting transparency in the management of revenues from natural resources but also as a tool to strengthen public trust, accountability, and economic growth.”
He acknowledged the invaluable data provided by NEITI’s reports, which have informed policy decisions and reforms aimed at fostering accountability in the sector.
“NEITI has become an indispensable partner in ensuring that Nigerians are fully aware of how their commonwealth is managed,” he stated.
The SGF emphasised the government’s commitment to NEITI’s independence, stating, “It is our duty to safeguard this independence with great care and diligence.”
NEITI Executive Secretary Dr. Orji Ogbonnaya Orji explained that the report was prepared through a meticulous and transparent process, involving extensive collaboration with various stakeholders. He noted, “The report provides valuable insights that will help guide policy, encourage robust public debate, and ultimately improve governance in the management of our natural resources.”
Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Olanipekun Olukoyede, also spoke, stressing the importance of compliance with NEITI’s independent audit process. He noted, “Where the work of NEITI stops is where the work of the EFCC begins,” adding that the EFCC has recovered over N1 billion based on NEITI’s past reports.
The NEITI 2022/23 Independent Report of the Oil and Gas Industry underscored the urgency for the President to reconstitute a Presidential Committee to design a strategic implementation plan for the Petroleum Industry Act and to address other governance recommendations.
The presentation was attended by Chairmen of National Assembly Committees, industry leaders, members of diplomatic missions, development partners, civil society organisations, and the media.
