From All Africa:

An audit of report of the oil and gas industry has revealed that Nigeria earned a total of $62.9 billion in the year 2012.

This is made up of $30.3 billion from crude oil and gas sales, $26.9 billion from taxes, royalties, rents and $5.6 billion as revenue flows to states, local governments and other entities.

The audit commissioned by Nigeria Extractive Industries Transparency Initiative (NEITI) in May last year revealed that the 2012 earnings is against $68.4 billion earned by the country in 2011, and represented a revenue decline of 8 percent.

According to the audit report uploaded in its website, NEITI, noted that the aggregate unresolved difference with respect to all the financial flows in 2012 is $47.5 million representing 0.075 percent of total financial flows from all sources when compared to 0.14 percent recorded in 2011.

NEITI spokesman, Dr. Ogbonnaya Orji told Daily Independent that the objective of the audit was to ascertain, review and reconcile all revenue and investment flows to and from government with respect to the oil and gas sector during the year 2012 as well as the physical flows achieved by the sector in the year and its allocation between the producing companies and government during the year in accordance with the rules and principles of the global Extractive Industries Transparency Initiative (EITI).

He said the report was released to meet the March 30th deadline set by the EITI for reporting countries.

The report further disclosed that about N1.3 trillion was processed for payment as subsidy to oil marketers while the sum of N690 billion was actually paid during the period.

The total of 862.7 million barrels was also disclosed as fiscalised crude oil production at an average daily production of 2.36 million barrels per a day.

Comparative breakdown showed that the amount from crude export sale declined to $21.6b from $24.7b in 2011 representing 13percent decrease. Also, domestic crude sale value declined to $18.15b from $18.36b in 2011, a 1percent decrease.

Gas sales also declined to $489m from $610.8m in 2011, representing a decline of 20 percent. Feed stock however grew to $1.84b under the period from $1.82b in 2011.

The report noted that “previous audit cycle witnessed a steadily increasing trend in the total Financial Flows to federation from $30.129 billion in 2009, to $44.944 billion in 2010, and $68.442 in 2011.

“However there was a decline of 8 percent in 2012 to $62.944 billion. The decrease in 2012 was largely due to a drop in the sales revenue from crude oil and gas attributable to reduction in production and lifting volumes as a result of the following: crude theft, deferred production due to destruction of production facilities and crude losses resulting from sabotage and pipeline breakages.”

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