The Nigerian Government earned $30.852Billion from the upstream oil industry in 2023, a 13.7% drop from $35.772Billion it recorded in 2022.
The 2023 oil and gas industry audit report by the Nigeria Extractive Industries Transparency Initiate (NEITI)
attributed the decline, in large part, to reduced oil price in the year and the full implementation of the
Petroleum Industry Act 2021.
Dividend payments and sales of federation crude oil and gas, one of the sources of revenue amounted to
$5.01Billion in 2023, a sharp 68% plunge compared with $13.435Billion received for the same subhead in
- Income from Production Sharing Contracts (PSCs), Modified Carried Agreements (MCAs) in-kind
payment also fell to $2.79Billion in 2023, a 49.3% decrease from $5.505Billion earned in 2022.
Other specific financial flows to the government through the regulator (Nigerian Upstream Petroleum
Regulatory Commission – NUPRC) from royalty, signature bonus, concession rentals, gas flare penalty etc.
- another revenue stream, rose by 9.9%, reaching US$6,477Billion for 2023, as against US$5,893 Billion
that was raked in through this source in 2022. Government also netted revenue under the heading of
Revenue Flows to Government Agency through FIRS – Federal Inland Revenue Service which stood at
$6.436Billion in 2023, a 10.2% decrease to the 2022 earning of $7.171Billion.
Even then, inflows to sub-nationals (payments of the 3% levy to Niger Delta Development Commission, 1% levy on contracts to the Nigerian Content Development Monitoring Board, income taxes to states, etc.), the fifth income stream that accrued to the government, ramped up to $10.137Billion, a whooping 169.2% increase over the $3,766Billion in 2022.
The NEITI report indicated that $20.739Billion, which is 67.2% of the $30.852Billion received in 2023 was
wired into the Federation Account (a purse where the three tier of government in Nigeria shares money
from). Dividend from the National Oil Company, NNPC (Nigerian National Petroleum Company) Ltd, and
Nigerian Liquefied Natural Gas (NLNG) formed part of the income at US$1.13Billion and US$849.314Million respectively.
Aside the income, there is outstanding liability from the sector. The NEITI report put the amounts due to
NUPRC as of August 31, 2024, and to FIRS as of June 30, 2024, at $6.175Billion.
