Nigeria lost $831 million, about N162.6 billion, as oil and gas firms in the country flared 271.38 billion Standard Cubic Feet, SCF, gas in 2015.
The amount of gas flared, according to the Nigerian National Petroleum Corporation (NNPC), in its Monthly Financial and Operations Report for December 2015, represented 9.5 per cent of total gas production of 2.858 trillion SCF recorded in 2015.
Particularly, the report put total domestic gas supply at 380.45 billion SCF, with 254.44 billion SCF for domestic gas to power, and 126.01 billion SCF for industries.
In addition, total gas export was put at 1.242 trillion SCF, broken down into 21.62 billion SCF for the West African Gas Pipeline, while Escravos Gas to Liquid, EGTL; Natural Gas Liquid/Liquefied Petroleum Gas, NGL/LPG; and the Nigerian Liquefied Natural Gas, NLNG, recorded 62.43 billion SCF, 87.63 billion SCF and 1.07 trillion SCF respectively.
On the other hand, 1.236 trillion SCF of gas was not commercialised, as 818.83 billion SCF was re-injected; 146.14 billion SCF was used as fuel gas, while 271.38 billion SCF was flared.
Using the average gas price of $3 per 1,000 SCF as stipulated by the Nigerian Gas Company, NGC, the 271.38 billion SCF of gas flared by the oil companies in 2015 translated to a loss of $831 million, and equivalent of N162.6 billion using an average exchange rate of N200 to a dollar.
Further breakdown of gas flared by oil companies in 2015 on a month-by-month basis showed that in January, February, March, April, May and June, oil and gas companies flared 26.68 billion SCF, 26.20 billion SCF, 28.49 billion SCF, 22.66 billion SCF, 19.07 billion and 18.66 billion SCF respectively.
While from July to December, they flared 18.80 billion SCF, 21.28 billion SCF, 21.89 billion SCF, 21.81 billion SCF, 23.25 billion SCF and 22.59 billion SCF, respectively.
Giving an analysis of natural gas off-take, commercialisation and utilisation, the report said out of the 228.55 billion SCF of gas produced in December 2015, a total of 126.23 billion SCF of gas was commercialised comprising 34.17 billion and 92.05 billion SCF for the domestic and export market, respectively.
This, according to the report, translates to an average daily supply of 1.102 billion SCF per day to the domestic market and 2.969 billion SCF per day supplied to the export market.
It said: “This implies that 55.23 per cent of the total gas produced was commercialised while the balance of 44.77 per cent was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.88 per cent for the month of December 2015, that is, 728.65 million SCF per day, compared with the 2015 year-to-date average flare rate of 9.51 per cent, that is, 744.80 million SCF per day.
“Total gas supply for the period January to December 2015 stands at 380.45 billion SCF and 1.242 trillion SCF for the domestic and export market respectively.
“A total of 722 million SCF per day was delivered to the gas fired power plants in the month of December 2015 to generate an average power of about 3,004 megawatts (MW) compared with a 2015 year-to-date average gas supply of 694 million SCF per day and power generation of 2,957 MW.”
Customs Intercepts N6, 974m Worth PMS
Barely two weeks after seizing a tank-full equivalent of Premium Motor Spirit (PMS), known locally as petrol, the Seme Command of the Nigeria Customs Service has intercepted 1005 jerry cans of the same product.
The product, amounting to 3000 litres, is with Duty Paid Value (DPV) worth of N6,974,750.00.
A statement signed by the Command’s Spokesman, DSC Hussaini Abdullahi, and made available to our correspondent in Lagos at the weekend, said the seizure was made during a routine check of the adjoining creeks, beaches, and flash points.
The statement quoted the Customs Area Controller, Comptroller Bello Mohammed Jibo, as saying that “as long as unrepentant and undesirable elements engage in acts of economic sabotage and smuggling, so shall officers and men remain a step ahead to counter their illicit trades”.
The statement further reads: “In continuation of our efforts to suppress smuggling of petroleum products within the nooks and crannies of the command, officers and men of the Seme Area Command on a routine patrol along the creeks within Seme and Badagry intercepted another large quantity of petroleum products in sacks.
“After successful evacuation of the said item to the command’s premises where examination was conducted, one thousand and five (1005)x 30 litres of jerry cans of petroleum products each, equivalent to thirty thousand, one hundred and fifty (30,150) litres were discovered. The Duty Paid Value (DPV) is Six million, nine hundred and seventy four thousand, seven hundred and fifty naira (N6,974,750.00), only”.
While showcasing the seized products, Jibo commended the doggedness, patriotism, dedication and high level of professionalism exhibited by his men, noting that the new Land Cruiser patrol vehicles (Buffalo) recently donated to commands by the Management of the NCS has aided the operation of the command, as the vehicles enhance access to a wider circle.
By: Nkpemenyie Mcdominic, Lagos
NASS, MDAs’ Non-Remittance Of Taxes Cost FIRS N5.8bn …NCAA Tops Defaulters With N2,984bn
Non-remittance of tax deductions by the National Assembly, comprising the Senate and House of Representatives, as well as Federal Ministries, Departments, and Agencies has resulted in a loss of tax revenue amounting to N5.8 billion by the Federal Inland Revenue Service (FIRS) in 2019.
Disclosing this in its 2019 Annual Report on non-compliance, internal control, and weakness issues in MDAs of the Federal Government of Nigeria, the Office of the Auditor General of the Federation said it is for the year ended December 31, 2019.
The MDAs, according to the Report, are the Federal Ministry of Agriculture and Rural Development; Federal College of Freshwater Fisheries Technology, New Bussa; Advertising Practitioners Council of Nigeria; Nigerian Civil Aviation Authority; Nigerian Communications Satellite Limited; Hussaini Adamu Federal Polytechnic, Jigawa State; Federal Medical Centre, Keffi, Nasarawa State; Department of Petroleum Resources; National Assembly Service Commission; and Nigerian Correctional Services.
It stated that between 2018 and 2019, the MDAs failed to either remit one per cent stamp duty, value added tax, withholding tax or Pay As You Earn tax deducted from awarded contracts, thereby contravening sections of the Financial Regulations and Treasury Circular issued on December 29, 2015.
The Report further stated that Paragraph 234(I) of the Financial Regulations states that “it is mandatory for accounting officers to ensure full compliance with the dual roles of making provision for the Value Added Tax and withholding tax due on supply and services contract and actual remittance of same”.
Specifically, it quoted Paragraph 235, saying, “Deduction of VAT, WHT, and PAYE shall be remitted to Federal Inland Revenue Service at the same time the payee who is the subject of deduction is paid”.
It continued that the Treasury circular Ref No. TRY/A12&B12/2015 and OAGF/CAD/VOL.II/390, dated December 29, 2015, states that “1% Stamp Duty chargeable on contract awards and the remittance be made to the relevant tax authority (Federal Inland Revenue Service)”.
The Report also stated: “The audit observed that the sum of N5,828,621,715.06 was the amount of taxes not remitted by 12 Ministries, Departments and Agencies.
“The Nigerian Civil Aviation Authority (NCAA) has the highest amount of N2,984,887,250.00, while Federal College of Freshwater Fisheries Technology, New Bussa has the least amount of N1,021,011.13”.
NCS, Apapa Records N870,39bn Revenue Boost
The Apapa Command of the Nigeria Customs Service (NCS) recorded an impressive performance in its revenue generation and anti-smuggling campaign in 2021.
Disclosing this recently during a review of its activities in 2021, the Area Controller of the command, Comptroller Yusuf Malanta, said the sum of N870.38 billion of the N2.24 trillion announced recently by the Service was collected in Apapa Command in 2021.
Giving an insight into the command’s revenue profile, Malanta told newsmen that the N870.38 billion collected by the command was 68 percent more than what was collected in 2020 which was N518.4 billion.
He stayed that the Command recorded 103 seizures worth N31 billion in 2021.
Malanta identified the seizures as 46.55kg of cocaine, which was concealed on board MV Karteria and MV Chayanee Naree laden with raw sugar; containers of foreign parboiled rice, tomato paste, secondhand clothes, unregistered pharmaceuticals such as captagon pills, tramadol, codeine syrup, etc.
“These were seizures made in accordance with the provisions of sections 46, 47, and 161 of the Customs and Excise Management Act (CEMA) CAP C45 LFN 2004. These seizures are condemned by a competent court of law and the suspects are still undergoing investigation and interrogation”, the Customs boss said.
He continued that 5.38 metric tons of non-oil commodities were exported through the command as against 1.3 million metric tons in 2020.
According to him, the Free on Board (FOB) value for the exported items rose from $340 million (N140 billion) in 2020 to $641 million (N264 billion) last year.
By: Nkpemenyie Mcdominic, Lagos
Oil & Energy16 hours ago
Lawmaker Applauds Wike On Curbing Oil Theft, Illegal Refineries
Niger Delta14 hours ago
Project N’Delta Group Chides Akpabio Over Delayed NDDC Board
Focus14 hours ago
Wike’s Pragmatic Offensive Against Illegal Bunkering
Oil & Energy16 hours ago
FCMB Boosts Modular Refinery
Oil & Energy16 hours ago
NLNG Approves Supply Of LPG To Nigerian Market
Politics16 hours ago
RSG Takes Proactive Steps To Tackle Illegal Refineries
Business16 hours ago
SON Set To Check Hackers, Cyber Crimes In Nigeria
News15 hours ago
Forum Of LG Chairmen Hails PDP Govs’ Unity, Drive To Rescue Nigeria