The Nigeria Extractive Industries Transparency Initiative, NEITI said that Nigeria lost at least 16 billion dollars in ten years due to non-review of the 1993 Production Sharing Contracts, PSC with oil companies.
This was one of the highlights of the latest report by NEITI released in Abuja which was tagged “The Steep Cost of Inaction”. It said that the losses were recorded between 2008 and 2017.
The study done in conjunction with Open Oil, a Berlin-based extractive sector transparency group, found that the losses could be up to 28 billion dollars if, after the review, the Federation were allowed to share profit from two additional licenses.
NEITI, therefore, called for an urgent review of the PSCs to stem the huge revenue losses to the Federation.
It added that the review was particularly important for Nigeria because oil production from PSCs had surpassed production from Joint Ventures with PSCs now contributing the largest share to federation revenue.