Nigerian Govt generated N4.3tn from oil in 2021 — NEITI

The Nigerian Extractive Industries Transparency Initiative (NEITI) estimates that the Federal Government received N4.3 trillion from the oil and gas industry in 2021.

This information was found in the “Oil and Gas Industry Report for 2021” by NEITI.

The research states that this amounts to around 40% of overall revenue now, down from 51% in 2020.

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It revealed that in 2021, the Federal Government earned a total of N10.7 trillion.

It attributed the rise in oil revenue to the rise in the price of crude to$66.97 per barrel in 2021 compared to $41.65 per barrel in the previous year.

According to the organisation, while an aggregate sum of about $5.4bn was made from proceeds of exports of crude oil sales, the sum of $5.8bn was raked in from the sales of domestic crude oil, and $648m from equity gas proceeds in the year under review.

Total crude oil lifting and feedstock sales for the accounts of the Federal Inland Revenue Service and the defunct Department of Petroleum Resources in 2021 amounted to about $4bn.

Nigeria’s main revenue comes from the sale of crude oil and gas exports.

According to NEITI’s report, the total revenue generated from Nigeria’s oil and gas operations in 2020 was $20.4bn, representing a 40 per cent decrease in revenue from the $34bn generated in 2019.

Also, data obtained from the National Bureau of Statistics showed that the country earned N21tn ($45.6bn) from crude oil sales in 2022.

While delivering the welcome address during the report launch on Monday, NEITI’s Executive Secretary, Orji Ogbonnayan, currently said the share of oil and gas sales in the Gross Domestic Product declined to 3.5 per cent from 11.4 per cent in 2022.

He added that revenue from crude oil sales as of July 2023 was N2.3tn.