Economy
Nigeria Earned $21bn from Oil/Gas Sector in 2017 – NEITI
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiatives (NEITI) has disclosed that Nigeria earned the sum of $21 billion from the oil and gas sector in 2017. This disclosure came from NEITI at the 2017 Oil and Gas Industry Report released in the nation’s capital, Abuja on Wednesday.
It said the figure showed a 23 percent increase from the 2016 figures of 17.05 percent and 15 percent lower than $24.79 billion inflow recorded in 2015.
A breakdown of the financial flows by revenue streams showed that crude oil and gas sales topped the table with about $10.19 billion, while other financial flows accounted for about $10.13 billion.
It added that flows to other entities like the Niger Delta Development Commission and Nigeria Content Development Monitoring Board among others were $669.05 million.
The report said: “In a five-year comparison of revenue flows from the oil and gas sector, the report revealed that there was a steady decline in year-on-year revenues from 2013 to 2016, with the sharpest drop of 55 per cent in 2015 compared to the preceding year.
“The year under review experienced a 23 per cent increase in revenues, 23 percent from 17.06 billion dollars in 2016 to 20.99 billion dollars in 2017.”
According to the report, 2017 witnessed a halt in the steady revenue decline the sector has been experiencing since 2013.
The report also showed that inflows from the Nigeria Liquefied Natural Gas (LPG) as dividend, interest and loan repayment were $834 million.
This indicated was a significant increase of 114 percent from the 2016 figures pegged $390 million.
On oil production during the period under review, a marginal increase of 4.75 per cent (690,465 barrels) as against the 659,137 barrels produced in 2016 was recorded.
It noted that the significant increase in revenues when compared to the increase in production volumes was as a result of the increase in oil prices.
The report further pointed out that average crude oil price was higher in 2017 and was sold for an average of $54.44 as against the S43.73 in 2016, and this signified an increase of 24.5 per cent.
“Out of the 690,465 mbbls of crude oil produced in 2017, a total of 688,291 mmbls was lifted, representing an increase from the 668,147 mmbls lifted in 2016,” it added
The NEITI report also showed that the Nigerian National Petroleum Corporation (NNPC) lifted a total of 241 million barrels (mbbls) of crude oil on behalf of the federation.
A breakdown of the liftings show that federation exports accounted for 135 million barrels, while the domestic crude liftings accounted for 106 million barrels.
It further disclosed that the federation exports volume went down by 36 per cent from 211 mbbls in 2016 to 135 mbbls in 2017.
It noted that while liftings by the companies amounted to 447 mbbls, joint venture operations, production sharing contracts and sole risk operators accounted for 130 mbbls, 223 mbbls and 79 million barrels respectively.
It said that the marginal field and service contract operators lifted 15mbbls and 1mbbls during the year under review
On crude allocation for domestic use, the report indicated that in 2017, the NNPC allocated 105.925 mbbls for domestic, while 25 per cent of this quantity was supplied to the refineries, 69 per cent was on the other hand utilised for the Direct Sales and Direct Purchase arrangement.
On production arrangements in terms of volumes, joint ventures and production sharing contracts produced 305 mbbls and 303 mbbls.
It added that others such as service contracts, marginal fields and sole risks accounted for the balance.
The report said: “Sole Risk operations produced the highest percentage increase of 114 per cent, and Marginal Field operations witnessed an increase of 32 per cent in the year under review.
“Overall production from the JV companies increased by 16.199 mbbls, indicating a six per cent increase from 2016 volumes.
“On the contrary, PSC and SC operations suffered volume reductions of six per cent and 31 per cent respectively.”
On Gas production, it said the total gas production was 3,494,774 mmscf from all arrangements, slightly higher than 2016 production of 3,051,249 mmscf by 15 per cent.
It noted that the total volume of gas flared in 2017 increased by 23 per cent, while gas utilisation saw a significant jump of 32 per cent when compared to 2016 volumes.
The report also said $8.474 billion was budgeted for Cash Call obligations, but only 49 per cent or $4.13 billion was paid as at January 2018.
It said out of the $5.125 billion negotiated as outstanding cash call liabilities for 2016, $2.177 billion was paid, therefore, leaving a balance of $2.948 billion.
It further observed that 2017 witnessed a huge drop in crude oil theft, sabotage and deferred production.
It said: “Nigeria lost about 36.5 mbbls of crude oil to theft and sabotage and there was 69mbbls lost due to decrease in production volumes resulting from routine maintenance or unplanned repairs of the production facilities.
“This is regarded as a remarkable improvement particularly, when compared to the 2016 figures of 101 mbbls and 144 mbbls lost to theft and deferred production respectively.”
NEITI also noted that there was reduction in pipeline breaks in 2017 (924 breaks) when compared to the figures of the previous years (2013-3,571; 2014-3,732; 2015-2,832 and 2016-2,589 breaks).
This decline, it said, suggested a positive return on the actions taken to mitigate vandalism.
The report further added that the oil and gas sector contributed 8.68 percent to Nigeria’s Gross Domestic Product (GDP)
The 2017 NEITI oil and gas report covered 63 entities and these include seven government agencies, 12 joint venture companies, 13 production sharing contract companies and 16 marginal field operators.
By Modupe Gbadeyanka
The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.
The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.
At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.
According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.
It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.
The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.
The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.
As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.
From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.
Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.
In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.
Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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