The Nigerian National Petroleum Corporation paid the sum of N1.019tn into the Federation Account as proceeds from the domestic sale of crude oil and gas and other petroleum products from January to December 2015.
This, however, indicates that the revenue from such products was down by N658bn when compared with the previous year’s figure, according to the latest financial and operations’ report of the NNPC.
The corporation gave its total proceeds from the domestic sale of the listed products in 2014 as N1.677tn.
A further analysis of the report by the NNPC showed that Nigeria made its highest income in January last year, as it raked in N131.46bn.
This, however, was in contrast to the N193.4bn that was meant for to the country in the month of January, meaning that the Federal Government was unable to get the remaining N61.94bn.
On the other hand, the NNPC stated that the month with the least total proceed receipts was September. The corporation recorded a total naira receipts for crude oil, gas and other products amounting to N66.93bn at the end of that month.
It put the total proceeds at N132.53bn. This leaves a difference of N65.5bn for September 2015.
A close look at the NNPC report showed that the Federal Government could not collect the entire proceeds in any of the months of 2015 as it recorded shortfalls all through.
On the actual amount garnered as proceeds for each commodity during the year in review, the NNPC gave the naira earnings/receipts from oil as N987.54bn; gas proceed receipts, N28.26bn; while the product(s) categorised as “other receipts” got N3.64bn.
SUNDAY PUNCH exclusively reported last week that proceeds from the sale of Nigeria’s crude oil and gas alone fell by N30.01bn ($150.4m) between October and December 2015.
According to the NNPC, the country raked in $420.3m (N84.1bn) as proceeds from the sale of oil and gas in October last year, but in December of the same year, its earnings fell to $269.9m (N53.98bn).
Although no reason was given as to why the country’s proceeds from crude oil, gas and other products’ receipts were down by N658bn, the NNPC said that it was carrying out a reform that would position it for profitability going forward.
It said, “The NNPC aspires to drive a fundamental change in its performance in order to improve profitability, accountability, transparency and focus. Consequently, the new NNPC leadership team is committed to ensuring a fit-for-purpose organisation aligned with the NNPC’s aspiration.
“This will be achieved by restructuring the corporation into autonomous entities that will enable a substantive step change towards the desired outcome. Accordingly, the restructured NNPC will be composed of four autonomous business units, namely: upstream, downstream, refineries, gas and power and supported by a lean group headquarter. Non-core assets will be ring-fenced in a ventures unit.”
The corporation also stated that the key constraint to Nigerian upstream sector had been under-funding of the sector, which prompted the use of debt to finance essential projects aimed at arresting production decline and growing producible reserves.
According to the NNPC, the conventional oil and gas fields typically have average decline rates of 10 per cent to 20 per cent per year, adding that this requires a serious increase in investment in infrastructure and production facilities to maintain production plateau or to grow production.
“In this regard, the NNPC recently kick-started the process of selecting financial advisors for alternative financing initiative aimed at bridging the current upstream Joint Venture funding gap, growing the NPDC production and establishing energy investment funds for downstream infrastructure development,” it added.