FG loses $1.28bn to crude oil theft–NEITI – Blueprint – For Truth and Justice

Stories by David Agba


Nigeria lost a whopping 27.12 million barrels of crude oil worth about $1.28 billion to crude theft in 2015, a report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has shown. The NEITI oil and gas audit process covered 75 entities, including 54 oil and gas companies, 10 government agencies, three refineries, seven power generating companies, the Nigeria Liquified Natural Gas (NLNG) and the Nigeria Gas Company, according to the transparency initiative. The report put the total oil production in 2015 at 776.66 million barrels of crude, inclusive of oil from different production arrangements such as Joint Ventures (JV), Production Sharing Contracts (PSC), service contracts Sole Risk/Independent Operators and Marginal Field Operators (SRIO/MFOs). However, the report said the total volume of crude lifted by the different contract arrangements was 780.42 million barrels. Out of this figure, the Federation (through NNPC) lifted 313,336,000 barrels, while the companies lifted 467,093,000 barrels. Gas production came to 3,250,667.66 mmscf. The total revenue flow to the federation, other tiers of government and sub-national entities from all sources (including crude oil sales, taxes, royalties and other incomes) came to $24.791billion. NEITI stated, “The total outstanding revenue from the 2015 Oil And Gas Industry Audit was $3.78 billion and N80.64 billion, while the total losses came to $2.26 billion and N60.99 billion. The sum of N317 billion is yet to be reconciled.” The report also showed a total of $723.28 million loss from the country’s Offshore Processing Arrangement (OPA) in 2015. “Based on documents received from PPMC on the status of all OPA and SWAP contracts, NNPC carried out a reconciliation exercise in 2015. The OPA reconciliation showed a reconciled liability against OPA companies totalling $498,611,970.89 which is due to under-delivery of imported fuel by the participating companies,” the report said. On subsidy payment for the year, NEITI noted that the sum of N145.5 billion was appropriated for subsidy in 2015, whereas the amount claimed as subsidy by both NNPC and the marketers was N653.5 billion. NNPC claimed N 317.28 billion and other marketers claimed N336.24 billion. PPPRA approved the sum of N317.2 billion for NNPC, but the corporation utilised N316 billion (which was deducted at source). NEITI found that the amount appropriated for subsidy was less than what was claimed by both marketers and NNPC. NNPC deducted subsidy at source and did not adhere to the PSF.

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By David Agba Abuja The African Export-Import Bank (Afreximbank), the FCI and the University of Malta today in Cairo announced the opening of registrations for the 2018 cohort of the Certificate of Finance in International Trade (COFIT). Stephen Kauma, Afreximbank’s Director & Global Head of the Human Resources Department, said that COFIT 2018, which is open to banking and trade finance professionals from across Africa, will be delivered in four full-time modules …