The Nigerian Extractive Industries Transparency Initiative (NEITI), says the total financial flows from Nigeria’s oil and gas sector slumped to $17.05bn in 2016, a 31 per cent decline on the $24.79bn generated in 2015, and a 75 per cent plunge on the sector’s peak earnings of $68.44bn in 2011.
The dip in oil earnings showed that Nigeria lost $51.39bn within the period under review, it said in its recent data, adding that the 2016 figure was the lowest in 10 years and the fifth lowest in the 18 years covered by NEITI’s audit reports so far (1999 to 2016).
The latest report revealed that the plunge in revenue in 2016 resulted from the double incidence of low oil prices in the global market and reduced oil production in Nigeria, which was caused by disruption and vandalism of oil assets and a spike in crude theft, among others.
The yearly average price of crude oil per barrel was $43.73 in 2016 as against $52.5 in 2015. The total oil production in 2016 was 659 million barrels as against 776 million barrels produced in 2015, a fall of 15 per cent. According to the report, the losses due to crude oil theft and sabotage rose from 27 million barrels in 2015 to 101 million barrels in 2016, an increase of 274 per cent.