The U.K. Department for International Development, 2003, Revised Draft Reporting Guidelines. Available via internet: http://www.dfid.gov.uk.
International Monetary Fund, 2003, Issues and Prospects in the Oil and Gas Sector, in: Nigeria: Selected Issues and Statistical Appendix, IMF Country Report No. 03/60 (Washington).
World Bank, 2000, “Nigeria – Taxation and State Participation in Nigeria’s Oil and Gas Sector” Discussion Paper, (unpublished, September, Washington).
Prepared by Ulrich Bartsch.
Statements made at the opening of the petroleum revenue management workshop, Abuja, 19 February, 2004.
About 80 of the participants came from the government, 100 from the private sector and civil society organizations, and 30 from international organizations. The workshop aimed at providing a broad overview of technical and political issues in the petroleum sector.
With the exception of the joint venture with Royal Dutch/Shell at 55 percent, all JVs have 60 percent government participation. The JV production-weighted average government share is 57 percent.
This difference in concepts means the auditor-certified annual accounts for NAPIMS cannot be compared to government revenue receipts.
For a more detailed description of the Nigerian fiscal regime, see IMF (2002).
“Indigenous producers” are Nigerian companies operating small marginal fields at their sole risk. They pay royalties and petroleum profit tax, but the government has no equity participation.
The government’s overall equity share changes from year to year, as production under alternative arrangements changes. It was 47 percent in 2003.
The price was significantly below the market price in order to subsidize the NNPC’s downstream operations, which were incurring losses because the official retail price for petroleum products did not cover costs of refining, imports, and distribution at market price (see chapter on Petroleum Products Market for more details).
The NNPC series has been shifted by one month to the right.
It should be noted that the NNPC is not concerned with the collection of PPT, but that it calculates PPT for the joint venture partners to register payments for NAPIMS’ accounts.
Staff estimates are based on actual production and cost data, and the formula specified in the MoU. In contrast, payments reported by the CBN and OAGF are based on ex ante estimates of production data, and the agreed work program for the year. Tax assessments are made on the basis of actual production and cost data at the end of the tax year (April-March), and adjustments are paid during April-May.
Oil company executives are often asked to testify before parliamentary committees to clear misunderstandings; in addition, numerous partly overlapping committees are charged with overseeing the oil sector, which delays decision making in the sector and increases production costs.
See chapter on Natural Gas Prospects for staff estimates of dividends.