Nigeria loses $2.27bn to OPA and Crude swap- NEITI
Abuja, Dec. 29, 2017 (AltAfrika)-The Nigeria Extractive Industries Transparency Initiative (NEITI} says Nigeria lost 2.27 billion dollars and N60.99 billion to the Offshore Processing Arrangement (OPA) and crude for product swap arrangement, valuation issues, crude oil and petroleum products losses.
NEITI stated this, in its 2015 Oil and Gas Industry Audit, released Friday in Abuja.
It said that a net loss of 723 million dollars was recorded through the Offshore Processing Arrangement, meaning that the value of refined products that the country received through OPA was less than the value of the crude given by 723 million dollars, even after allowances had been made for costs and margins.
“The President Muhammadu Buhari administration cancelled the OPA in November 2015 for being uneconomical. However, there was an outstanding liability of 498 million dollars by companies contracted under OPA from under-delivery of imported products.” It said
The report also noted that 90 million dollars was lost through a practice where NNPC used a revised/lower pricing option at the point of payment instead of the higher price at the point of purchase.
It recommended that non-cash call expenses should be paid from NNPC overhead budget, while payment to NIA and others from cash call account should be discontinued.
In addition, the report disclosed that Nigeria’s oil and gas revenues plunged from 54.5 billion dollars in 2014 to 24.8 billion dollars in 2015, while the country’s oil production fell from 798 million barrels in 2014 to 776 million barrels in 2015.
It also stated that Nigeria suffered a 54.6 per cent decline in oil revenues but only a slight 2.7 per cent fall in oil production, blaming this on the drastic reduction in the unit price of crude oil in the global market.