Nigeria loses $60 billion to dormant PSCs in 11 years, says RMAFC.

nigeria lose money petroleum

Nigeria loses $60 billion to dormant PSCs in 11 years, says RMAFC.

Power plants get 213b cubic feet of gas

Nigeria lost $60 billion to non-review of petroleum sharing contracts (PSCs) in the last 11years, Acting Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Shettima Abba-Gana, has disclosed.

  He regretted that the lack of action on the regulatory mechanism, introduced in 1993, had resulted in the feathering of private pockets.

  Speaking yesterday at the National Policy and Development Summit (NPOD), organized by the Office of the Senior Special Assistant to the President on Policy Development and Analysis in Abuja, Abba-Gana canvassed re-negotiation of existing PSCs to tackle leakages.

   He stated: “PSCs contribute about 15 percent to the federation account. But unfortunately, the inability of the government to review them for the past 11 years has led to the loss of $60 billion and when I mean loss, it means it has been going to personal pockets.”

  The RMAFC boss said the nation was also losing  $14 billion yearly to the joint venture contracts (JVCs) operated by the Nigerian National Petroleum Cooperation (NNPC). He attributed the development to the drop from 1.8 million to 700,000-900,000 barrels per day (bpd).

  Abba-Gana noted that with the current production level of 780,000bpd at $60 a barrel, the federation makes about $30.42 million daily and $11.1 billion yearly.

  On the theme, “interrogating the change agenda”, he pointed out that Nigeria made more money from tax prior to and during the period.

   The RMAFC chief however observed that the figures never tallied, adding that during the pre-change era of 2013-2015, the Federal Inland Revenue Service (FIRS) collected N13.2 trillion and remitted N10 trillion.

  According to him, in the post-change period, covering 2016 to 2018, the agency raked in N12. 6trillion and still remitted a lower figure of N7.64 trillion.

  To consolidate the gains of revenue-collecting agencies, he called for a comprehensive review of the 1993 PSCs, anti-vandalism initiatives, measures to contain crude theft and maximize production as well as diligent granting of waivers and concessions.

  Meanwhile, the NNPC yesterday said 735 million standard cubic feet of gas were delivered daily to fire power plants in November 2018 in contrast with the 627mmscfd tally of the previous month.

  In its latest financial and operations report, the national oil company’s monthly trading surplus improved to N2.06 billion.

  The document revealed that of the 212.93 billion cubic feet (bcf) of gas supplied during the period, 123.29bcf were commercialized, consisting of 36.14bcf and 87.15bcf for the domestic and export markets.