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Nigeria Earned $32.6bn From Oil, Gas In 2018 -NEITI
Nigeria Extractive Industries Transparency Initiative (NEITI), yesterday, disclosed that Nigeria earned a total of $32.63 billion from the oil and gas sector in 2018, a 55 per cent increase on the $20.99 billion recorded from the sector in 2017.
In a statement on the release of the 2018 oil and gas industry audit, NEITI also announced plans to release the 2019 audit report this year, effectively clearing the backlogs of the audits of the extractive sector and making the reports more timely and relevant.
Giving a breakdown of the $32.63 billion earned in 2018, NEITI stated that company-level financial flows into government coffers were $16.6 billion, while flows from sales of federation crude oil and gas accounted for $16.billion.
It said, “A five-year trend analysis of the earnings from the extractive sector showed a 54.6% drop from $54.6 billion in 2014 to $24.8 billion in 2015. The earnings further dropped by 31.2% to $17.05billion in 2016, but increased by 23% to $20.99 billion in 2017 and by 55% to $32.63 billion in 2018.
“Though the last two years bucked the trend of persisted decrease since 2014, the revenues from the sector in 2018 were still a staggering 40% below the $54.6 billion earned in 2014 when oil prices commenced a precipitous fall.
“The NEITI 2018 audit reconciled payments by seventy-one companies and the Nigeria Liquefied Natural Gas (NLNG) that met the materiality threshold set for the exercise. A total of eight government entities were also covered by the audit.
“Out of the $32.63 billion earned from the sector in 2018, the sum of $19.92 billion was transferred directly into the Federation Account, while $5.21 billion and $4.04 billion were transferred into the Joint Venture (JV) Cash Call Account and Nigerian National Petroleum Corporation (NNPC) designated accounts respectively.
“The NNPC designated accounts are the Naira and dollar accounts where domestic crude sales and the federation equity, royalty, petroleum profit tax and in-kind oil sales are paid into respectively before remittance to the Federation Account.
The report further disclosed that “$2.10billion was transferred into third parties project financing accounts and $1.37billion were recorded as subnational transfers.”
On production, NEITI stated that the total crude oil production in the country within the period under review was put at 701 million barrels, representing a slight increase of 1.5% when compared to 690 million barrels produced in 2017.
Giving a breakdown of crude oil production, NEITI disclosed that Joint Ventures (JVs) contributed highest production of 315 million barrels, followed by Production Sharing Contracts (PSCs) which recorded 270.610 million barrels.
In addition, it noted that other funding arrangements like Sole Risk (SR), Marginal Fields (MF) and Service Contracts (SC) accounted for 92.2 million barrels, 22 million barrels, and 1.3 million barrels respectively.
NEITI said, “JV companies’ production increased by 3.12% in 2018 compared to 2017, while PSC operators’ production decreased by 10.90%. Similarly, SR operators’ production increased by 58.72% in 2018 compared to 2017. Production from the SC decreased by 10.27% while production from MF operators increased marginally by 1.18%.”
NEITI further disclosed that total crude oil lifted for both export and domestic sales in 2018 was 701 million barrels, representing a 1.9% increase when compared with total liftings of 688.3 million barrels in 2017.
In its analysis of the total lifting in 2018, NEITI stated that 255.6 million barrels or 36% was lifted by NNPC on behalf of the Federation, while companies lifted 445.5 million barrels or 64% of total liftings.
It said, “The liftings by NNPC indicates an increase of 5.95% when compared to 241 million barrels lifted in 2017. Further analysis showed that out of 255.6 million barrels lifted by NNPC in 2018, actual sales were 255.3 million barrels valued at $18.2 billion.
“Out of the 255.6 million barrels lifted on behalf of the Federation by NNPC, a total of 107.63million barrels was recorded as Domestic Crude Allocation (DCA) in 2018. Out of this figure, 94 million barrels or 87% of the DCA were utilized for Direct Sale Direct Purchase (DSDP), while the balance of 13.58 million barrels or 13% was delivered to the refineries.
“Ordinarily, 160.2 million barrels (or 445, 000 barrels per day) should have been allocated for domestic consumption but only 107.63 million barrels or 67% of the customary allocation for domestic consumption was allocated in 2018.
“The sum of N2.295 trillion was realized as proceeds from sales of domestic crude oil allocation in 2018, out of which the following deductions were made: N722.3billion for under – recovery of imported petroleum products, N28.3 billion for crude and product losses and N138.95billion for pipeline repairs and maintenance cost.
“In 2018, total crude oil losses due to theft and sabotage was 53.28million barrels, an increase of 46.15% when compared to 16.824million barrels recorded in 2017”.
Similarly, the report put total products losses in 2018, due to pipeline breakages at 204,397.07 cubic meters.
“On gas production, the NEITI 2018 oil and gas report revealed that the total gas production for the year under review was 2,909,143.69mmscf, while total gas utilization was 2,909,143.55 mmscf.
“From the report, $307.20 million was realized from the sales of Federation gas of 633.55thousand metric tons in 2018. This represents increase of 7.10% when compared to 721.80thousand metric ton valued at $286, 85 million realized in 2017.
“The national gas reserve stood at 200.79tcf as at end of 2018. This is made up of 101.98 tcf of Associated Gas (AG) and 98.81 tcf of Non-Associated Gas (NAG). With the 2018 annual gas production quantity, the gas Reserves Life Index (RLI) was estimated at 92 years”, the report disclosed.”
On management of Joint Venture Cash Call, the report disclosed that aggregate cash call funding for 2018 amounted to $5.98billion.
In addition, the report noted that: “outstanding Cash Call Liabilities amounted to $3.66billion, comprising $3.41billion (93%) legacy liabilities and US$260million (7%) performance balance payable to JV operators”. Another feature of the oil and gas report is on social expenditure.
“Total social expenditure (mandatory and voluntary expenditures) was $902.67million. This consists of voluntary contribution of $59.27million (6.57%) while mandatory contribution stood at $843.39million (93.40%)”.
The mandatory contribution was made up of NDDC’s 3% levy of $683.38million and NCDMB’s 1% levy of $160.01million. Oil and gas industry contribution to the Gross Domestic Product (GDP) in 2018 was put at 7.8%.
“The flows in the industry accounted for $32.64billion in absolute terms. This represents 7.8% of the total GDP Current Basic Price of ($ 418.12billion)”.
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We’re Working To Improve Quality Of Life Of Rivers People -Fubara …As Taraba Gov Inaugurates 6.55km Okania-Ogbogoro-Mgbaraja Roads Project
Rivers State Governor, Sir Siminalayi Fubara, has reiterated the commitment of his administration to render quality service that will improve the quality of life of residents, and strengthen the platform to promote unity.
Governor Fubara gave the assurance at the Okania-Ogbogoro Road junction, venue of the inauguration of the 6.55km Okania-Ogbogoro-Mgbaraja (and Mgbuoba) Roads project in Obio/Akpor Local Government Area, yesterday.
The road cuts across Okania community through Ogbogoro, and connects Port Harcourt Ring Road project under construction, and was inaugurated by the Taraba State Governor, Dr Agbu Kefas.
Governor Fubara said that during the campaigns, he saw the roads in terrible condition, made a promise to fix them, and noted that that promise has been kept.
He emphasised that his administration will never be reckoned with abandoning of projects that it started, which is why he is particularly excited that the road has been fixed to ease the inconveniences suffered by the people.
The Governor said, “What we are doing here today is very simple: Promise made, promise fulfilled. I told you that whatever we are going to start, we are not going to leave it halfway. So, we have come here this afternoon to fulfill that promise.
“I am so excited, and I am so happy. I am leaving here with so much joy that we have done something that has so much impact, and importance in the lives of our people. So, I feel very fulfilled. Government is about the people. Government is knowing, understanding and seeing what you can do to make life easy for your people.
“We understand the situation of this road. Fortunately, I have a few friends who also live around here. So, there is nothing you will say that I don’t know. As a government, we will continue to do those things we know will make life easy for you.”
The Governor thanked members of the communities in the area for their support to his administration, and also for cooperating with the contractor to ensure completion of the project.
He assured the people that their request for the rehabilitation of the Community Secondary School and Health Centre, will be looked at and addressed immediately, saying, “Our government is a government that takes the interest of our people very seriously.
“There is no government without the people. It is only the people that keep the government going. So, what we will continue to do is to make sure that the problems and interest of our people are top on our list,” he assured.
Performing the inauguration, Taraba State Governor, Dr Agbu Kefas, said roads are not just physical infrastructure but represent a commitment to facilitate ease of transportation, boost local commercial activities and improve quality of lives for the people of Rivers State.
Dr Kefas noted that Governor Fubara has provided the people good roads, and like other good roads, it will serve as an artery of development, further connecting communities, enhancing access to essential services while unlocking economic potentials.
He said, “By completing this project, Your Excellency has, once again, demonstrated the transformative impact of visionary leadership. When I was coming in with the Governor on a ride, I saw the joy, the happiness of the voiceless people who were abandoned and neglected in this area, coming out to wave and welcome us.
“It wasn’t a hired crowd. Everybody, those who couldn’t make it to this place, in front of their homes, they were waving at us, and I was telling the Governor: this is all about good governance. He listened to the people, and solved their problems. So, it shows that he is doing the right thing, and I want to thank you, my brother, for what you are doing for the good people, especially the poor people even in difficult times.”
Governor Kefas further said: “As we celebrate this milestone, I am reminded of the importance of collaboration and shared vision among us as Governors. Together, we can inspire our people, improve their lives, and create lasting legacies in our respective states.”
Providing the project description, the State Commissioner for Works, Barrister Elloka Tasie-Amadi, recalled that when it was flagged-off in May, 2024, the project was for a 5km stretch but was extended in October, to include Mgbaraja axis, increasing the length to 6.55km, explaining that the 10.3 meter wide, and 5km of drains road, has now linked Apara Kingdom to Nkpor Kingdom.
In his address, Chairman of Obio/Akpor Local Government Area, Amb Chijioke Ihunwo, described the road as a very significant route that was abandoned for years until Governor Fubara intervened and fixed it, promising that Obio/Akpor people will not take the gestures of the State Government under Governor Fubara for granted.
Speaking on behalf of China Civil Engineering Construction Corporation (CCECC), the firm that handled the project, Eric Shen, said they are happy to be part of the infrastructure development strides of Governor Fubara, stating that though the rains posed significant challenge, they have delivered quality road network to serve the connectivity needs of the people.
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We’ll Implement Judicial Commission’s Report On Arson, Killings -Fubara …Says Such Violence Must Stop In Rivers
Rivers State Governor, Sir Siminalayi Fubara, has assured of implementing the recommendations of the report submitted to him by the Judicial Commission of Inquiry into the Arson, Killings, and Wanton Destruction of Property at some local government council headquarters on or around Monday, October 7, 2024.
Governor Fubara gave the assurance when the seven-member commission, led by the Chairman, Justice Ibiwengi Roseline Minakiri, submitted four volumes of reports of their investigation and recommendations to him at Government House in Port Harcourt, yesterday.
The Governor declared that his administration will neither tolerate nor allow such level of violence in the State anymore because it is not profitable or productive.
He said, “We are not going to be part of any system that would encourage any destruction in this State. And for that reason, we had to inaugurate this commission, so that this commission should look into the remote and immediate causes of this problem.
“And I believe that the recommendations of this commission, with the help of God and the support of everyone, we will make sure that we implement the recommendations.”
Governor Fubara said: “We are going to take it to the next stage. The report will be presented to the Executive Council, and there, we will surely come out with the White Paper and with the White Paper. I can assure you, we are going to follow it to the end.
“Nobody is above the law, including me. So, provided what we are doing is within the confines of the law, we will do it with the help of every one.”
Governor Fubara recalled how, before 2014, a group of persons had ran wide recklessly in the State, burning down court buildings.
He noted that it is such persons, who had recently surfaced with their destructive tendencies, and have extended the violence to local government councils, killing people and destroying government property.
Governor Fubara wondered why somebody will spend so much money to build a structure intended to last as legacy of the administration but would eventually be part of its destruction in the name of politics.
Governor Fubara clarified that he has never been part of such destructive politics that continue to set the State backwards and frustrate progressive development strides.
Governor Fubara said: “I make bold to say it, I have never been and will never be a party to anything that will bring shame, disgrace, destruction to our dear State.
“It is our State. If it is well with us, it will be well with everybody. As a matter of fact, why should I encourage destruction, when I know that when you finish spoiling things, you still need money to rebuild them.
“I am an accountant, I know the importance of how we can manage money. Rather than spoil, you should use that money to do a new thing for the State.”
Governor Fubara vowed: “So, I am going to ensure that we put a stop to that level of violence or such unreasonable violence. I call it unreasonable violence because it doesn’t mean anything in politics.
“Politics is a business of interest. There is no permanent friend, no permanent enemy. Some persons who were not even in our support, today, they are here following us because their interest is the most important thing.
“Likewise tomorrow, if the interest changes, they will also go their different ways. So, why burn down the house?”
Governor Fubara thanked members of the commission for being bold, focused, and accomplishing their task with determination in the face of physical and legal threats.
In her presentation, Chairman of the seven-member Judicial Commission of Inquiry, Justice Ibiwengi Roseline Minakiri, said they had put their findings into four volumes, including the recommendations.
Justice Minakiri explained: “We have here four volumes of the report. We have the memoranda, which is the memoranda we got after we made our publications.
“We also have the exhibits that came with the memoranda. We have the proceedings and the records. At the end of the day, we came up with the main report.”
Justice Minakiri advised that the recommendations of the report should be studied and implemented so that people can be deterred from such callous acts and the sought-after peace secured for the State.
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We Are Eager To Showcase The Best Of Rivers State -Fubara …Declares Federation Of Public Service Games Open
The Rivers State Government says it is committed to providing a memorable experience for all delegates participating in the Federation of Public Service Games(FEPSGA) hosted by the State Government.
Governor Siminalayi Fubara stated this during the opening Ceremony of the 43rd Edition, Public Service Games, titled ”Simplified Rivers 2024″, at Sharks Stadium, Port Harcourt, last Sunday.
Speaking through his Deputy, Prof. Ngozi Nma Odu, Governor Fubara said “Our hospitality is renowned and we are eager to showcase the best of Rivers State. From top-notch facilities to a secure environment, we have everything in place to ensure a seamless and enjoyable experience for all participants.”
Governor Fubara said to ensure the success of the games his Administration has put in place comprehensive plans and preparations with four venues approved for the events which include the Sharks Stadium, Alfred Diette -Spiff Civic Centre, Port Harcourt Club and the University of Port Harcourt.
The State Chief Executive urged participants to remember that the true spirit of FEPSGA goes beyond winning medals, stressing that it is about building bridges of friendship, fostering a sense of community and celebrating our diversity.
According to him, we envision a public service that is more productive, more efficient and more effective, a future where public servants are empowered to deliver exceptional results driven by a culture of excellence, innovation and teamwork.
The Governor reiterated that while a healthy mind and body are essential for high productivity, regular physical activity boosts our mood, increases energy levels and enhances our cognitive function. We are eager to showcase the best of Rivers State. From top-notch facilities to a secure environment.
In her address Head of the Civil Service of the Federation Mrs Didi Esther Walson-Jack, who spoke through Dr.(Mrs) Magdalene Ajani, Permanent Secretary in the Federal Ministry of Interior Commended Governor Fubara for hosting this year’s event, and for his dedication to promoting sports and fostering unity in the country.
She noted that the event which serves as a platform for furthering unity, camaraderie and sportsmanship amongst public servants, was a celebration of their shared commitment to excellence, resilience and service to the nation.
Also speaking the National President of the Federation of Public Service Games (FEPSGA), Comrade Amaebi Aloku, said Rivers State got the nod to host the annual event because the Federation was pleased with the vision of Governor Fubara in identifying with the needs of the Civil Servants in the State, in terms of their welfare and being one of the first State to implement the new minimum wage and even taking it above what was approved by the national.
Earlier the Head of Service Rivers State, Dr George Nwaeke had welcomed all participants to the State and expressed gratitude to the Governor for approving and making available the resources to host the games, noting that it was an opportunity to interact with all Civil Servants across the nation.
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