FG made N748bn from oil tax, royalty in 2017 - Agency reveals

FG made N748bn from oil tax, royalty in 2017 - Agency reveals

- An agency known as the Department of Petroleum Resources (DPR) in its recent report revealed that the federal government made huge earnings from paid taxes and royalties in 2017

- The DPR reported that the federal government earned N748 billion from payments made by oil companies

- The report also stated that the agency renewed about 25 oil blocks, which had combined revenue of about 1 billion dollars

The Department of Petroleum Resources (DPR) said the federal government earned N748 billion from taxes and royalties paid by oil and gas companies operating in Nigeria in 2017.

The News Agency of Nigeria (NAN) reported that this was contained in DPR’s report made available at a workshop organised for energy reporters in Lagos on Friday, July 27.

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The report said the revenue represented about 83 per cent of the agency’s target. The report also stated that the agency renewed close to 25 oil blocks, which had combined revenue of about one billion dollars.

According to the report, the agency granted approval for 16 new field development plans in 2017, which would increase the nation’s oil and gas production by 560,463 when completed.

The report said: “We renewed 19 expired leases in 2017 to enhance upstream investment influx and accelerate oil and gas reserves and production growth. We actively supported the implementation of a major gas commercialisation programme, which seeks to create a regulatory framework to facilitate gas flare monetisation to end gas flaring by 2020.”

The agency said it issued ten licences and approval for development of gas production and processing facilities that culminated in the commencement of the operation of the plant.

The agency said it revised and issued new DPR procedure guide for the determination of quantity and quality of petroleum products in Nigeria.

The DPR said it initiated early lease renewal programme to accelerate revenue generation for government.

It added that this was meant to fund national budget and incentivice upstream investment by ensuring security of tenure, long gestation and payback period for oil and gas investments.

The agency further said it facilitated improved cooking gas usage with local consumption growing from 390,000 metric tons to 470,000/metric tons with a potential to hit 500,000 metric tons milestone.

The report further said: “We increased national gas reserve base from 192.07trillion cubic feet to 197.74 trillion cubic feet representing 3.5 per cent increase over the preceding year.

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“We increased operator compliance on National Production Monitoring System (NPMS) by commencing the upgrade of the NPMS to real time data captured in 26 crude oil terminal locations. This improved the efficiency in the administration of crude oil export and production accounting.”

Meanwhile, Legit.ng reported that the Nigerian National Petroleum Corporation (NNPC) had revealed that it spent N1.4 trillion per year as fuel subsidy. According to the federal government, the NNPC had been shouldering this burden as it was the last resort in the supply of petrol.

Legit.ng gathered that the government described the amount as under-recovery in order to sustain the 50 million litres of PMS consumed across the country.

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Source: Legit.ng

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