Thursday, November 21, 2024
27.1 C
Lagos

N4bn Oil Theft: BudgIT Tasks Regulators in Oil Sector

Nigeria Extractive Industries Transparency Initiative (NEITI) – a body that shoulders the task of improving transparency and accountability in the management of revenues from natural resources – released last December the audit report of the oil and gas industry for 2016.

Followingly, BudgIT has critically assessed the report and come up with salient analysis, demanding actions from regulatory bodies in the sector.

From the report, there were three cases of under-remittance in the first quarter of 2016 in which unit prices and crude values on the sales invoice were higher than the recorded figure in the sales profile, amounting to an aggregate revenue loss of $7.82 million. From our analysis, this revenue loss, alone, can be used to build and equip almost 500 hospitals in oil-rich but devastated communities in the Niger Delta region.

In the same vein, NNPC failed to apply market rate as advised by the CBN to convert the sales proceeds received in US dollars for domestic crude sales, which resulted in a revenue loss of N260.43 million. An under-remittance of N4.02 million was also observed in 2015 due to similar practices.

BudgIT also found that losses arising from crude oil theft and sabotage in the upstream and downstream sectors amounted to $869.02 million and $3.55 billion respectively. Similarly, in 2016, twenty-three companies incurred a liability of $3.63 million on gas flare penalty. This can actually be expended on four research and development projects in the oil and gas sector.

Worried by this spate of losses, BudgIT called on all entities that have been identified with outstanding issues to resolve them immediately. We note with dismay that some of the issues have not only persisted but have also escalated over the years.

“We are charging all regulatory bodies of government to wake up to their responsibilities in ensuring compliance with the rules of engagement,” said Gabriel Okeowo, BudgIT’s Principal Lead. If properly structured back into the economy, the huge amount that goes down the drain, courtesy of these issues, will go a long way in contributing to the economic recovery and growth plan of the federal government, he added.

spot_img
spot_img
spot_img

Hot this week

NNPC’s Utapate Crude Grade Hits Global Oil Market, OML 13 Eyes 80,000 bpd by 2025

Managing Director, NNPC E & P Limited (NEPL), Mr....

UNIDO, ILO, Others to Headline 5th Lagos Waste Forum

Top government officials, Coca-Cola, the United Nations Industrial Development...

Polaris Bank Champions Financial Literacy for Students in Commemoration of World Savings Day 2024

Polaris Bank concluded its nationwide financial literacy initiative with...

WAICA: Heirs Insurance Sector Head Seeks AI Innovation to Drive Insurance Growth

L-R Niyi Onifade, Sector Head, Heirs Insurance Group and...

Topics

‘Paris Club Refunds to Stimulate Economy’

Official Statement by Mrs. Kemi Adeosun, Honourable Minister of...

Dettol Unveils Handwashing “Letter for Life” Campaign

According to the World Health Organization, Diarrhoea disease is the...

Stanbic IBTC Bank Nigeria PMI: Output Prices Rise at Second-fastest Pace on Record

Customer demand improved again in the Nigerian private sector...

Ringier Africa, Asia Pacific Form New Structure/Leadership

Ringier is restructuring its international market set-up for the...

Nigeria’s Headline Inflation Rate Drops to 15%

According to Cordros Capital, Nigeria’s headline inflation rate commenced...

Invitation to Business Journal 2nd Annual Lecture/Awards 2019

The Board, Management & Staff of Business Journal (print...
spot_img

Related Articles

Popular Categories

spot_imgspot_img