Oil Wheeling, Dealing Has Nigeria Govt Short-Changed on Royalties
Oil is Nigeria's main export. A cloud of uncertainty now hangs over U.S.$62 billion in outstanding taxes and royalties owed Nigeria by major oil operators in the country. The national government had in 2019, taken the step to recover as much as U.S.$$62 billion (£50.6 billion) from international oil companies using a 2018 Supreme Court ruling which, it said, enabled it to increase its share of income from production-sharing contracts. Chika Izuora writes for Leadership, that the government was compelled to demand the money after realising that the energy companies failed to comply with a 1993 contract-law requirement that the country receive a greater share of revenue when the oil price exceeds U.S.$20 per barrel. Getting companies to comply with royalty payments seems a challenge. In 2017, the government gave oil firms a 2-week deadline to pay outstanding royalties, while in 2019 it sought back-taxes totalling U.S.$20 billion from seven oil firms, including Royal Dutch Shell.
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Nigeria:
Production Sharing Contract - Government, Oil Majors Pass the Buck Over Nigeria's U.S.$62 Billion Cut
Leadership, 13 April 2021
There is a cloud of uncertainty surrounding $62 billion outstanding taxes and royalties owed Nigeria by operating major oil companies in the country. Read more »
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Nigeria:
Nigeria Lifted $33bn Crude, Condensates in One Year - NNPC
This Day, 5 April 2021
A cumulative volume of 734 million barrels of crude oil and condensates were lifted by all parties, including oil multinationals and the Nigerian Petroleum Development Company… Read more »
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Nigeria:
IEA Sees Drop in Nigeria's Crude Oil Capacity By 2026
This Day, 6 April 2021
The International Energy Agency (IEA) forecasts that crude oil capacity in Nigeria will drop by 200,000 barrels to 1.6 million barrels per day by 2026 due to low investment. Read more »
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Nigeria:
Again, Senate Panel Summons NNPC Over Non-Remittance of N4.07trn Revenue
Daily Trust, 29 March 2021
The Senate Committee on Public Accounts has again summoned the Nigerian National Petroleum Corporation over non-remittance of N4.07trn revenue to the federation account between… Read more »
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Nigeria:
PIB - Akwa-Ibom Former Minister Demands Oil Blocks Allocation Review
Vanguard, 22 February 2021
Former Minister of Lands, Housing and Urban Development, Chief Nduese Essien has demanded that the Petroleum Industry Bill, PIB, should review the allocation of oil blocks in the… Read more »
InFocus
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Although Nigeria is Africa's leading economy, it has come through a bruising 2020. The country slipped quietly into a recession, mainly due to the falling oil price and the lack Read more »
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Nigeria has been relying solely on crude oil as its major source of revenue. Now the government has said unfolding events of the past few months, the coronavirus pandemic and the Read more »
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The government has asked seven oil majors operating in the country to pay U.S.$20 billion in outstanding taxes and royalties that it says is owed to various Nigerian states. Royal ... Read more »
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A year after shutting down all of its dilapidated refineries to figure out how to fix them, the government has approved U.S.$1.5 billion for the rehabilitation of Port Harcourt ... Read more »
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