May 26, 2024

Tinubu’s administration pays N14.78bn to consultants for recovery of loss revenue from domestic crude in August 2023- NBS report 

Oredola Adeola

 

President Bola Tinubu’s administration paid N14.78 billion to third-party consultant for the recovery of loss revenue from Domestic Crude in August 2023 from the total revenue generated in July 2023.

 

This was contained in the Nigerian Bureau of Statistics (NBS) FAAC Disbursement Report for August 2023, obtained by EnergyDay on Monday.

 

According to the report, this amount is paid out of the sum of N1.80 trillion disbursed by the Federation Account Allocation Committee (FAAC) to the three tiers of government in August 2023 from the total revenue generated in July 2023.

 

EnergyDay gathered that the amount paid to the consultant was for the recovery of the country’s revenue due to it from profit made by the International Oil Companies (IOCs) under Production Sharing Contracts.

 

The Nigerian Extractive Industries Transparency Initiative (NEITI) in its recently released report reported total unremitted revenues to the federation by some relevant government agencies and companies in the oil and gas sector in the year 2021 rose to over $9.85 billion.

 

The report also detailed outstanding financial liabilities due to the federation amounting to $13.591 million in revenues payable to the Federal Inland Revenue Service as of July 31, 2023, while the Nigerian Upstream Petroleum Regulatory Commission had outstanding tax collectible revenues of $8.251 billion as of December 31, 2022.

 

Over 80 percent of these outstanding financial liabilities are owed by the Nigerian National Petroleum Company Limited (NNPCL), the report showed.

 

EnergyDay further gathered that the Federal Government employed consultants to recover the excess of the government’s share from the profits, taxes, and levies on crude oil made by those companies.

 

The consultants are said to be entitled to about 5% of the recovered sum, however their names and the amount recovered as of August 2023 were not revealed.

 

The NBS report further showed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received N7.38bn as Cost of Collection and N2.95bn as a refund to NUPRC on the Cost of Collection in the period under review.

 

These figures show a slight decrease in the NUPRC cost of collection in August compared to July 2023.

 

The NUPRC cost of collection in August is lower when compared with the N8.54bn it received in July 2023, while the NUPRC refund on the Cost of Collection was N2.95bn for the two months.

 

 

The NBS report also revealed that the sum of N56.49 billion was shared among the oil-producing states from the 13% derivation fund, while N47.78 billion was released as a 13 percent Derivation Refund to oil-producing states on withdrawal from ECA, compared with N47.48bn shared as 13 Derivation and N48.59bn 13 % Derivation refund to oil producing states in July 2023.