Business

NEITI Audit: FG Recovers N600bn From Oil Companies

Published

3 years ago

September 10, 2022

The Federal Government has recovered N600bn from oil and gas companies operating in Nigeria which comprised unpaid taxes, royalties, penalties and commission on rentals that were identified in the audit report of the Nigeria Extractive Industries Transparency Initiative.

Data seen in Abuja on Friday showed that the total liabilities of the 77 oil firms that were involved as at 2019 was N2.6tn, based on figures captured in the audit report of NEITI.

The House of Representatives invited the firms in a bid to recover the funds and it was gathered that after the intervention by the lawmakers, the companies commenced the process of remitting some of the funds.

Documents obtained by The PUNCH in Abuja on Friday indicated that while the total recovery pre-2021 and before the pronouncement of NEITI was N900bn, the additional amount recovered after NEITI’s pronouncement/National Assembly review was N600bn.

NEITI conducts a financial, physical and process audit that assesses and reconciles physical and financial flows within Nigeria’s oil and gas industry in line with the EITI Standard and the NEITI Act 2007.

The oil and gas audit has the objective of confirming the outstanding payments (liabilities) due to the federation from each covered company through the respective revenue collection government agencies.

The management of NEITI had repeatedly expressed concern about the liabilities highlighted in its various reports considering the high demand for government revenue for development projects.

The House of Representatives, had during a plenary session, noted the statement by NEITI that 77 oil and gas companies operating in Nigeria were owing the Federal Government over N2.6tn.

The House had also noted that the debts accrued from the failure of the firms to remit Petroleum Profit Tax, Company Income Tax, Education Tax, Value Added Tax, Withholding Tax, Royalties, penalties and concession on rentals to the Federal Government.

Speaking to select journalists on the development in Abuja on Friday, the Executive Secretary, NEITI, Orji Ogbonnaya-Orji, said it was the duty of the agency to make data of the country’s extractive industries available to government.

He also stated that the audit report of the oil industry for 2021 would be ready before the end of this year, adding that it would further provide updates on the remittances so far made by the oil firms to the Federal Government.

Ogbonnaya-Orji said, “The 2021 (oil and gas sector) report will be concluded and published before the end of the year. The scope of the report is to establish what companies paid to the government within the given the year of 2021 and how much of that money did government received.

“We equally want to establish if those companies paid what they should pay and if the government actually received what it should receive, as well as the variances if any.

“We want to establish the quantity of crude that is produced, how much of that can be accounted for, and how much was stolen. We should establish the amount that was exported, reserved for local consumption and how was this reserved one managed.”

PUNCH

Business

JUST IN: Dangote Refinery Hikes Petrol Ex-depot Price

Published

2 days ago

June 20, 2025

Editor

Nigerians may soon pay more for petrol as the Dangote Petroleum Refinery on Friday increased its ex-depot price for Premium Motor Spirit to N880 per litre, raising fresh concerns over fuel affordability and price volatility in the downstream sector.

Checks on petroleumprice.ng, a platform tracking daily product prices, and a Pro Forma Invoice seen by The PUNCH confirmed the hike, representing a N55 increase from the previous rate of N825 per litre.

The increment would ripple across the entire fuel distribution chain, likely pushing pump prices above N900/litre in some parts of the country, especially in areas far from the distribution hubs.

The hike comes despite global crude prices falling. Brent crude dipped by 3.02% to $76.47, WTI fell to $74.93, and Murban dropped to $76.97 on Friday. The decline in benchmarks offers little relief due to persistent fears of sudden supply disruptions.

The refinery has increased its reliance on imported U.S. crude and operational costs amid exchange rate instability, which adds to its pricing pressure.

On Thursday, the President of the Dangote Group, Aliko Dangote, said his 650,000-barrel capacity refinery is “increasingly” relying on the United States for crude oil.

This came as findings showed that the Dangote Petroleum Refinery is projected to import a total of 17.65 million barrels of crude oil between April and July 2025, beginning with about 3.65 million barrels already delivered in the past two months, amid ongoing allocations under the Federal Government’s naira-for-crude policy.

Dangote informed the Technical Committee of the One-Stop Shop for the sale of crude and refined products in naira initiative that the refinery was still battling crude shortages, which had led it to resort to imports from the United States.

On Monday, the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, accused oil marketers of exploiting Nigerians through inflated petrol prices, insisting that the current pump price of PMS should range between N700 and N750 per litre.

He criticised the disparity between falling global crude oil prices and the stagnant retail price of petrol in Nigeria.

“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre.”

He asserted that if Nigerians bear the brunt of higher fuel costs, they should be allowed to enjoy the benefit of low pricing.

His forecast of increased costs now appears spot on, considering the latest developments.

Marketers are already adjusting. Depot owners and fuel distributors in Lagos and other cities anticipate a domino effect, with new price bands expected to follow Dangote’s lead.

Many had held back pricing decisions since Tuesday, when the refinery halted sales and withheld fresh PFIs. The delay fueled speculation, allowing opportunistic price hikes across various depots.

Business

Naira Appreciates At Official Market

Published

4 weeks ago

May 24, 2025

Editor

The Naira, which has seen steady appreciation against the Dollar all week, closed stronger on Friday, trading at ₦1,580.44 in the official forex market.

Data from the Central Bank of Nigeria’s website show the Naira gained ₦4.51k against the Dollar on Friday alone.

This marks a 0.28 per cent appreciation from Thursday’s closing rate of ₦1,584.95 in the official foreign exchange window.

The local currency maintained consistent strength throughout the week, recording gains daily.

On Monday, May 19, it traded at ₦1,598.68; on Tuesday, at ₦1,590.45; and on Wednesday, at ₦1,584.49.

These gains suggest increased investor confidence and improved forex supply, contributing to the naira’s performance.

Meanwhile, the CBN, at its 300th Monetary Policy Committee meeting held Monday and Tuesday, retained the Monetary Policy Rate at 27.5 per cent.

Business

BREAKING: Again, Dangote Refinery Cuts Petrol Price

Published

1 month ago

May 22, 2025

Editor

The Dangote Petroleum Refinery has announced a nationwide reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, with new prices now ranging between ₦875 and ₦905 per litre, depending on location.

The ₦15 per litre cut applies across all regions and partner fuel stations, and was confirmed via an official announcement posted on Dangote Refinery’s social media channels on Thursday.

Major marketers participating in the new pricing regime include MRS, Ardova, Heyden, Optima Energy, Techno Oil, and Hyde Energy — partners in the distribution of Dangote-refined products.

Under the previous pricing structure, Lagos residents paid ₦890 per litre, while prices reached ₦920 in the North-East and South-South regions. With the latest adjustment, Lagos now pays ₦875 per litre, while the North-East and South-South will see prices drop to ₦905.

A regional breakdown of the revised prices is as follows: Lagos: ₦875, South-West: ₦885, North-West & Central: ₦895, North-East & South-South: ₦905 and South-East: ₦905.

In its announcement, Dangote Refinery encouraged consumers to purchase fuel only from authorised partner stations and urged the public to report any cases of non-compliance via its official hotlines: +234 707 470 2099 and +234 707 470 2100.

“Our quality petrol and diesel are refined for better engine performance and are environmentally friendly,” the company said.