The 2020 oil and gas industry audit report released by Nigeria Extractive Industry Transparency Initiative (NEITI) showed that the oil and gas sector contributed only 8.16% to the total GDP in 2020.
This represents a decline of 0.46% when compared to the 8.62% recorded in 2019.
Nigeria earned $20.43billion from the oil and gas sector in 2020,representing a decline of 40% compared to the 34.22billion realized from the sector in 2019.
Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, disclosed these at the public presentation of the agency’s industry reports of the oil, gas, mining as well as the fiscal allocation and statutory disbursement in Abuja.
The report further revealed that the sector dominated the country’s export in 2020, contributing about 75% (N9.44Trillion) of the total export value of N12.52Trillion.
On remittances to the Federation Account from the oil and gas sector, the report also disclosed that $14.65Billion, representing 71.17% of the total earnings in 2020, was remitted to the account, while total aggregate financial flows from the oil and gas sector to government in ten years (2011-2020) was $394.029 billion.
The report also revealed that the total crude oil production in 2020 was 646.7mmbbls, representing a 12% decrease when compared to the 735.24 mmbbls produced in 2019. Out of the above total production in 2020, 648.48mmbbls were lifted, and this was 11.85% lower than the 735.66mmbbls lifted in 2019.
On domestic crude allocation and consumption, the NEITI report also disclosed that 107.746mmbls was managed by the NNPC under the Direct Sale Direct Purchase arrangement. It also revealed that the value of the crude exchanged under the DSDP arrangement was $6.7billion, while the value of the refined products received for local consumption was $6.03billion, indicating a variance of $134.78million.
As regard to fuel subsidy, the NEITI report further disclosed that NGN106.9billion was paid as subsidy between January and June 2020 to sustain product availability with an outstanding balance of N26.74Billion yet to be paid. NEITI also reported that 20.01billion litres of petrol, 52million litres of kerosene and 5.33billion litres of diesel were respectively imported into the country for domestic use during the period under review.
The report said 39.16mmbls of crude valued at US$44.73million (N15.71billion) was stolen with 349 cases of pipeline vandalism recorded in 2020,representing an improvement on the 1,387 cases of vandalism reported in 2019.
The report revealed that the gas sub-sector contributed over $1.5billion to the Federation account.
It added that the total gas production in 2020 was 3.01million cubic feet. While 64% of this total quantity was sold, 8% was flared and 4% unaccounted for.
The report emphasized the need for further investigations into the circumstances surrounding the transfer of the Federation’s stake in OML 24 operated by Pan Ocean and New Cross Energy. NEITI’s concern is on the value for money of the transaction, payment for the federation equity interest and recovery of the $309.1million that should have been paid for the asset.
It welcomed the Petroleum Industry Act and the prompt decision of President Buhari to set up a nine-member committee, including NEITI, to oversee its implementation adding that the courageous implementation of the reports of the Steering Committee when concluded will set the stage for a new oil and gas industry ready for competition and investment going forward.
