The Nigerian government lost at least $16 billion over the past 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 the Nigeria Extractive Industries Transparency Initiative, NEITI and released in Abuja on Sunday.

The report 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 if, after the review, the Federation could share profit from two additional licenses.

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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, JVs with PSCs now contributing the largest share to federation revenue.

“Between 1998 and 2005, total production by PSC companies was below 100 million barrels per year while JV companies produced over 650 million barrels per year.

“By 2017, total production by PSC companies was 305.800 million barrels, which was 44.32% of total production.

“Total production by JV companies was 212.850 million barrels, representing 30.84% of total production,” NEITI said.

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