NNPC, NPDC, Oil Firms Yet To Remit $3.8bn, N81bn Since 2015 – NEITI


 

Oil, gas revenues drop to $24.8bn By Michael Eboh The Nigeria Extractive Industries Transparency Initiative, NEITI, yesterday accused ‎the Nigerian National Petroleum, its downstream subsidiary, the Nigerian Petroleum Development Company, NPDC and other oil companies of failing to remit $3.78 billion and N80.64 billion to the Federation Account. Acting Executive Secretary of NEITI, Mr. Waziri Adio, NEITI, in its ‎2015 Oil and Gas Industry Audit,

released Friday, stated that the amount was for unpaid taxes, unremitted dividends of the Nigerian Liquefied Natural Gas Company, NLNG, unpaid liabilities from the controversial Offshore Processing Arrangement, OPA, outstanding liabilities with respect to oil and gas royalties and unremitted pipeline transportation fees, among others in 2015. Specifically, the report disclosed that the NNPC failed to remit $1.07 billion‎, being NLNG 2015 dividend paid to it; N418.99 million, being outstanding domestic crude oil liability as at December 31, 2015; $16.48 million and N1.6 billion, being the amount yet to be remitted by the NNPC to the Federation Account for pipeline transportation fee paid by the international oil companies, IOC. ‎The report also disclosed that outstanding liabilities of $1.58 billion and N78.2 billion were recorded against the NPDC, in respect of payments for Pay As You Earn, PAYE, Withholding Tax, WHT, Value Added Tax, VAT, Petroleum Profit Tax, PPT, royalty oil, royalty gas, levies and gas flared penalty. In addition, the report noted that various oil and gas companies were yet to remit a total of $1.11 billion and N428.319 million, being unpaid liability in respect of Royalty Gas and Royalty oil, unpaid liability in respect of Nigerian Content Development Monitoring Board, NCDMB and the Niger Delta Development Commission ‘s, NDDC, levies, ‎unpaid liabilities in respect of NESS Fee‎ and Petroleum Profit Tax, PPT. The report further disclosed that the country lost $2.27 billion and N60.99 billion to the Offshore Processing Arrangement and crude for product swap arrangement, valuation issues, crude oil and petroleum products losses. Particularly, NEITI stated that a net loss of $723 million was recorded through the Offshore Processing Arrangement, meaning that the value of refined products that the country received through OPA was less than the value of the crude given by $723 million, even after allowances had been made for costs and margins. It said, “The President Muhammadu Buhari administration cancelled the OPA in November 2015 for being uneconomical. However, there was an outstanding liability of $498 million by companies contracted under OPA from under-delivery of imported products.” The report also noted that $90 million was lost through a practice where NNPC used a revised/lower pricing option at the point of payment instead of the higher price at the point of purchase. Also, the report ‎disclosed that the NNPC made various payments totalling N597.8 million, comprising $307.83 million to the National Intelligence Agency, NIA and Navy for security; $238 million collected by NAPIMS as administrative charges; $7.2 million for travelling and accommodation; and $4.8 million for consultancy, among others, which the corporation lumped together as ‎total cash calls paid to joint venture operators in 2015, amounting to $4.37 billion‎. NEITI said it considers the $597.8 million paid‎ to the security agencies, NAPIMS and other logistics as non-cash call items. It recommended that non-cash call expenses should be paid from NNPC overhead budget, while payment to NIA and others from cash call account should be discontinued. ‎In addition, the report disclosed that Nigeria’s oil and gas revenues plunged from $54.5 billion in 2014 to $24.8 billion in 2015, while the country’s oil production fell from 798 million barrels in 2014 to 776 million barrels in 2015. It also stated that Nigeria suffered a 54.6 per cent decline in oil revenues but only a slight 2.7% fall in oil production, blaming this on the drastic reduction in the unit price of crude oil in the global market. Commenting on the report, Executive Secretary of NEITI, ‎Mr. Waziri Adio, ‎said, “Beyond providing a snapshot of what transpired in 2015, this report reveals money to be recovered, 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.”

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Read more at: https://www.vanguardngr.com/2017/12/917243/



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