NEITI WANTS NNPC TO ACCOUNT FOR N15.15TRILLION
Similarly, the report showed that total outstanding revenue from the sector as at 2015 stood at about $3.7 billion and N80 billion, with losses incurred at $2.2 billion and N60 billion, while unreconciled revenues amounted to about N317 billion.
The Executive Secretary of NEITI, Waziri Adio, noted that beyond providing a snapshots of what transpired in 2015, this report revealed monies to be recovered from different agencies, apart from recommendations on leakages to be blocked, and urgent reforms to be undertaken.
According to him,”The most critical take-away is the need to expedite, expand and sustain reforms in this still critical sector of national life. The most critical take-away is the need to expedite, expand and sustain reforms in this still critical sector of national life.”
The report shows that Nigeria suffered a 54.6% decline in oil revenues but only a slight 2.7% fall in oil production, adding further that,this was due to drastic reduction in the unit price of crude oil in the global market.
However.it will be recalled that the yearly average price of crude oil per barrel tumbled from $101.91 in 2014 to $52.16 in 2015. Oil and gas revenues have been declining since 2011 when total revenues peaked at $68.4b.
A five-year analysis in the report reveals that revenues declined by 8%, 7.7% and 6% in 2012, 2013 and 2014 respectively,while the decline leapt to double digits in 2015 when total revenue dwindled by more than half.
The report stated that,total oil production also dropped but not by much: from 798 million barrels in 2014 to 776 million barrels in 2015. The report attributed the decline to oil theft and militancy.
A total gas production went up by 20.23% from 2, 593,090 mmscf in 2014 to 3, 250, 667 mmscf in 2015,while the jump by a fifth was on account of the combined effect of increase in gas utilisation and decline in gas flaring.
The report said the total oil lifted in 2015 was 780 million barrels, about four million barrels higher than the amount produced with the balance drawn from previous years,stressing that of the 780 million barrels, the companies lifted 467 million barrels while NNPC lifted 313 million barrels.
NNPCs liftings were split almost evenly between Federation Export and Domestic Crude Allocation, which accounted for 159.4 million barrels and 153.9 million barrels respectively. However, only 8.7 million barrels or 5.6% of crude oil allocated for domestic consumption went to the refineries in 2015 on account of the state of the refineries.
