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Nigeria lost billions of dollars to non-remitted, underpaid monies in oil and gas – NEITI

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9 years ago

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The Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), Mr Waziri Adio, said Nigeria lost billions of dollars in 2013 to sharp financial practices in the oil and gas sector. Adio stated this while briefing the Senate on the agency’s 2013 audit report on the oil and gas sector and solid minerals sector in Abuja.
He said that the country lost 5.9 billion dollars and N20 billion to inefficient practices and theft, among other things, and that 1.7 billion dollars was still owed to the federation from oil mining leases (OML).
“In 2013 the country produced 800.3 million barrels and out of that, the country made 58.07 billion dollars and that represents an eight-per cent reduction from the 62.9 billion dollars the country made in 2012. The issue is that there are some monies that were withheld, lost or underpaid for different reasons. The first is in the category of the non-remitted, and the non-remitted amounted to 3.8 billion dollars and N358 million.
“ The second category is the category of losses. Because of some inefficient practices and theft among other things, the country lost 5.9 billion dollars and N20 billion.
“N20 billion was lost because the Nigerian National Petroleum Corporation (NNPC) did not observe the 90 days credit grace. Looking at the time value of money, if you calculate at 12 per cent interest, the country lost N20 billion. Under the category of the under-accessed, the country lost 599.8 million dollars. When we look at the non-remitted, 1.7 billion dollars is still being owed the federation for OMLS.
“Those are the monies we have established that should have been paid to the federation and were not paid,’’ he said. Adio also said that the audit report revealed that the NNPC divested some monies that should have been transferred to the federation account.
“NNPC, between 2010 and 2011, divested eight assets that belong to the federation to its upstream subsidiary, Nigerian Petroleum Development Company (NPDC).
“ So, NNPC divested 55 per cent of the shares being held on behalf of the federation to the NPDC. These eight OMLS are valued at 1.8 billion dollars by Department of Petroleum Resources (DPR). NPDC paid only 100 million dollars out of the 1.8 billion dollars, meaning there is an outstanding of 1.7 billion dollars and even the 100 million dollars was paid two years after. What this means is that NNPC lifted oil on behalf of NPDC not on behalf of the federation in spite of the fact that NPDC has not fully paid for those assets,’’ he said. Another issue is the losses incurred from swap and crude oil offshore processing agreement (OPA).
“This is the arrangement where NNPC exchanges crude for product and the country lost 518 million dollars due to the inefficiency of the swap and OPA,’’ he said.
The NEITI boss said that the audit report revealed infrastructural deficit in the oil and gas sector, revealing that lack of metering among other things, had serious implication on the country’s revenue and security. He said that though the country could account for exports, it could not say authoritatively the quantity of oil produced. He attributed the losses incurred in the sector to systemic and governance issues that needed to be addressed.
“After we released this report many Nigerians expressed outrage about the amount of losses, about the amount of money unremitted and all of that. The outrage is good but outrage is not a strategy; we need to come up with strategy to make sure that what happened in the past will not happen again.
“As a country we have to decide, do we want to make sure that we put systems and structures in place that will make sure that there are sanctions for misdemeanours?’’ he said. Barau called on the National Assembly to consider the audit report in the passage of the Petroleum Industry Governance Bill (PIGB) to address some of the issues in the sector. He also called on the National Assembly to increase the powers of the agency to enable it to punish offenders.

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Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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1 day ago

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December 5, 2025

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The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

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Economy

FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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2 days ago

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December 4, 2025

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Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.

The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.

He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.

Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.

The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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2 days ago

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December 4, 2025

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The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%. 

The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.

Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.

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