Disparities in extractive sector remittances down from $46.986m to $492,000

Incessant disparity in the remittances of revenue due from Petroleum Profit Tax (PPT) as well as royalties between the Federal Government and oil and gas companies is gradually easing off, as reconciliation of differences between what the companies paid and receipts from government agencies reduced from $46.976 million in 2012 to $492,000 in 2013.

According to a 2013 audit report for oil and gas and solid minerals released on Monday by the Nigeria Extractive Initiative Transparency Initiative (NEITI), more companies and government agencies are opened to the audit.

It read in parts that “41 oil and gas producing companies and 16 government agencies participated in the 2013 audit,” according to Kayode Fayemi, minister of solid minerals and NEITI board chairman, while presenting the report.

Key players in the industry are of the view that the willingness of most companies to submit to the audit processes is an indication that the nation’s oil and gas industry is itching close to enshrining transparency in the sector.

“There has been significant improvement in the response by companies to NEITI report. The reconciliation difference between what the companies paid and receipts by government agencies reduced from $46.976 million in 2012 to $492,000 in 2013. This 98 percent fall is attributed to improved record keeping by the entities.

“Under assessment in royalty payments decreased from $465 million (30 companies) in 2013, representing a decrease of 64 percent,” the report indicated.

In spite of the improvement, the report recommend that government should quickly resolve the issue of pricing methodology by enacting appropriate law to forestall under assessment of PPT and royalties.