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Business News

Nigeria achieves 55% increase in oil earnings for 2018 – NEITI

NEITI has announced that Nigeria earned a total of $32.63 billion from the oil and gas sector in 2018.

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NEITI, Solid minerals, Nigeria achieves 55% increase in oil earnings for 2018 - NEITI

The Nigerian Extractive Industries Transparency Initiative (NEITI) has announced that Nigeria earned a total of $32.63 billion from the oil and gas sector in 2018. This represents a 55% increase on the $20.99 billion, which was earned the previous year.

This was disclosed in a press statement signed by NEITI’s Director, Communications and Advocacy, Dr Orji Ogbonnaya Orji, and seen by Nairametrics.

The information is contained in the latest oil and gas industry audit conducted by the NEITI, which also announced plans to release the 2019 audit report this year, effectively clearing the backlogs of the audits of the extractive sector and subsequently making the reports more timely and relevant.

The report shows that $16.6 billion of those payments into government coffers was from companies, whereas about $16 billion was from sales of crude oil and gas.

[READ MORE: Oil at $26, as Saudi Arabia in no retreat no surrender oil battle with…)

A 5-year trend analysis of receipts from the extractive sector showed that the inflow of $24.8 billion in 2015 represents a 54.6% decrease when compared to the $54.6 billion that was achieved in 2014. It dropped further by 31.2% to $17.05 billion in 2016.

Budget 2020: Oil workers to earn N75 billion, Oil: International oil companies scale down on Nigeria operations, Mele Kyari, Oil and gas companies to slash spending, as oil price falls

Oil workers

However, it increased by 23% to $20,99 billion in 2017 and also $32.63 billion in 2018 which represents a 55% increase. Those decreases in the first two years were attributed to the crash in oil prices during that period.

The NEITI audit report for 2018 reconciled payments for Nigeria Liquefied Natural Gas (NLNG) and 71 other companies that met the materiality threshold set for the exercise. Eight (8) government establishments were also part of the audit exercise.

The report discloses that the sum of $19.92 billion was transferred directly to the federation account from the total sum earned in 2018, while $5.21 billion and $4.04 billion were transferred into Joint Venture (JV) Cash Call Account and Nigerian National Petroleum Corporation (NNPC) designated accounts respectively. Another $2.10 billion and $1.37 billion were transferred to third parties project financing accounts and subnational transfers respectively.

READ ALSO: S&P downgrades Nigeria to junk rating, as India cuts interest rates

The report also shows that the total crude oil production for 2018 was 701 million barrels. This represents a 1.5% increase when compared with the 690 million barrels achieved in 2017.

A further breakdown shows that the JVs contributed the highest production of 315 million barrels, followed by Production Sharing Contracts (PSCs) which achieved 270.6 million barrels. Others like Sole Risk, Marginal Fields and Service Contracts accounted for 92.2. million barrels, 22 million barrels and 1.3 million barrels respectively.

NEITI further reported that the sum of N2.2295 trillion was realized as proceeds from sales of domestic crude oil allocation in 2018 with the following deductions:

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  • N28.3 billion for crude and product losses;
  • N138.95 billion for pipeline repairs and maintenance cost; and
  • N722.3 billion for under-recovery (which some people refer to as fuel subsidy).

The report also reveals that the total crude oil losses due to theft and sabotage in 2018 were 53.28 million barrels as against the 16.824 million barrels recorded in 2017.

[READ ALSO: Nigeria pumps more Oil, joins the Oil market battle)

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On gas production, the report showed that the total gas production for 2018 was 2,909,143.69mmscf, while the total gas utilization was 2,909,143.55mmscf. The sum of $307.2 million was realized from the sale of federation gas in 2018 as against the $286.85 million which was achieved in 2017. This represents a 7.10% increase.

The report also notes that although the aggregate JV cash call funding for 2018 was $5.98 billion, the outstanding cash call liabilities was $3.66 billion. This is comprised of $3.41 billion legacy liabilities and $260 million performance balance payable to JV operators.

The oil and gas industry contributed 7.8% to the Gross Domestic Product (GDP) in 2018. It contributed $19.13 billion in absolute terms to exports in 2018. This represents 30% of the total exports of $62.49 billion.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Cryptocurrency

PayPal is buying a Crypto security startup for less than $200 million

PayPal is set to outrightly purchase a crypto-security firm, Curv as part of its campaign in building its crypto ecosystem.

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Paypal

PayPal is set to outrightly purchase a crypto-security firm Curv as part of its campaign in building its crypto ecosystem, the company disclosed today.

According to a report credited to CNBC, the deal is estimated to be worth less than $200 million, it’s expected to close before June this year.

The company’s stock price however recorded some selling pressures at the time of writing amid rising U.S Treasury yields and greenback keeping global investors on their toes.

READ: CBN and cryptocurrency ban

The crypto startup about to be acquired by PayPal provides companies with Crypto security technology via the cloud. PayPal revealed that the purchase would help its expansion on supporting crypto.

“The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision for a more inclusive financial system,” PayPal’s Jose Fernandez da Ponte said in a statement.

In a press statement seen by Nairametrics, Dan Schulman, president, and CEO, PayPal, gave key insights on why the global payment company was going crypto; The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of; financial inclusion and access, efficiency, speed, the resilience of the payments system and the ability for governments to disburse funds to citizens quickly.

READ: U.S customers can now buy Cryptos with Paypal

“Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption, and inter-operability of these new instruments of exchange,” he said.

Furthermore, he said, “We are eager to work with central banks and regulators around the world to offer our support and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce.”

This offering was made possible through a partnership with Paxos Trust Company, a regulated provider of crypto services and products.

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Corporate Press Releases

Transcorp Hotels launches Aura, an online marketplace for accommodation and experiences

Nigeria’s largest hospitality brand launches a new platform for booking vacation homes, holiday lets, and experiences.

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Dupe Olusola

Africa’s leading hospitality brand Transcorp Hotels Plc. has announced the launch of Aura, a new digital platform through which people can book accommodation, restaurants, and experiences.

The new brand, Transcorp’s first in the alternative accommodation segment, is part of the company’s asset-light model, leveraging technology to deliver true hospitality, exciting experiences, and drive shareholder value.

“It’s a new dawn in the hospitality industry! I am thrilled to introduce you to Aura by Transcorp, the digital platform we are using to connect people to quality accommodation, great food, and awesome experiences,” Managing Director and Chief Executive Officer of Transcorp Hotels Plc., Dupe Olusola said.

“For more than 30 years, Transcorp Hotels Plc has been at the forefront of creating a superior guest experience at our locations. Today, our commitment to innovation has offered us an opportunity to extend this beyond the hotel premises,” Olusola added.

The launch of Aura by Transcorp is one of the most significant developments in the company’s history as it seeks to transform the travel and tourism industry in Africa by focusing on three important components of travel, whether for leisure or business — where you stay, what you eat and how you spend your time. With its people-driven hospitality model, Aura is set to revolutionise travel and help remind Africans of our deep history of hospitality.

Speaking on the launch of Aura, Obong Idiong, Chief Executive Officer at Africa Prudential Plc, Aura’s technology partners, expressed his excitement. “Finding the right accommodation when you travel can be incredibly complex. Options available for the right prices are often limited, and travellers sometimes end up with accommodation that taints the travel experience. Transcorp Hotels Plc has been able to fix that with Aura and we are proud to be associated with them.”

“To ensure topnotch user experience, we built a solution to drive digital transformation through the adoption of shared living spaces for the Aura business. With an advanced search algorithm powered by artificial intelligence, Aura determines the relevance of locations taking into consideration, the customers’ preferences and requirements to meet them at the point of their needs,” Idiong added.

Priscilla Adeboye, a travel enthusiast and early adopter of Aura, said the global pandemic has pushed international travel down her list. “But I still want to be able to take some time off work or spend a weekend away from home with the family. I have found incredible homes on Aura that meet my need for space and privacy.”

Working with thousands of partners across Nigeria and different cities in Africa, Transcorp Hotels Plc. is building the continent’s largest platform for people-driven hospitality. While travellers enjoy the right selections at the best prices on Aura, hosts can also earn a lot of money by receiving guests in their unoccupied homes and sharing the local culture with them.

For travellers who would rather stay in hotels, Aura also has a great selection of some of the best hotels in every city.

With the launch of Aura, Transcorp Hotels Plc. has further cemented its leadership in the hospitality industry and reinforced its commitment to innovation and superior guest experience across different demographics.

Guests and hosts can sign up at aura.transcorphotels.com to start booking or hosting. The service is currently available in Nigeria only, but the company said plans are already in place to expand to major cities in Africa.

 

Transcorp Hotels Plc is one of Africa’s leading hospitality companies, committed to redefining service standards across the continent while remaining truly and authentically African.

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www.transcorphotels.com

Aura by Transcorp

Aura is Africa’s best platform for connecting travellers with great accommodation, good food, and memorable experiences. The platform is also an avenue for people with unoccupied homes, hotels, restaurants, or different skill sets that may interest others can earn an income by becoming hosts.

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