In a recent disclosure, the Nigerian Extractive Industries Transparency Initiative (NEITI) reported that the Federal Government amassed an impressive N4.3 trillion from the oil and gas sector in the year 2021. This revelation comes from NEITI’s comprehensive ‘Oil and Gas Industry Report for 2021.’ The figures indicate that oil income constituted approximately 40 percent of the total revenue, in contrast to the 51 percent it contributed in the previous year, 2020.
According to the NEITI report, the Federal Government’s overall revenue for 2021 stood at N10.7 trillion. The surge in oil revenue can be attributed to the substantial increase in crude oil prices, which averaged $66.97 per barrel in 2021, a significant rise from the previous year’s $41.65 per barrel.
Breaking down the figures further, NEITI revealed that approximately $5.4 billion was generated from the proceeds of crude oil exports, with an additional $5.8 billion originating from domestic crude oil sales. Additionally, the government received $648 million from equity gas proceeds during the year under review. Notably, total crude oil lifting and feedstock sales, managed by the Federal Inland Revenue Service and the now-defunct Department of Petroleum Resources, accounted for roughly $4 billion.
It remains evident that Nigeria’s primary source of revenue continues to be the sale of crude oil and gas exports, underscoring the critical role of the energy sector in the country’s economic landscape.
