By Yunus Yusuf
The Nigeria Extractive Industries Transparency Initiative (NEITI) has emphasised the importance of accountability and transparency in the nation’s energy sector.
Its Executive Secretary, Dr Orji Ogbonnaya Orji, said this yesterday in Lagos at the Association of Energy Correspondents Annual Strategic International Conference.
The theme of the 2024 conference is “Gas as Energy Transition Fuel: “Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics.”
Orji, who was represented by Mr Taiwo Olasupo, South West Zonal Representative, NEITI Board, said these principles were essential for attracting long-term investments necessary to harness Nigeria’s vast energy resources.
“Without these pillars, no serious investor will commit significant capital to our sector,” he stated, reinforcing the link between transparency and investor confidence,” he said.
Orji, who shared vital findings from NEITI’s recently released 2022/2023 Oil and Gas Industry Reports, revealed that over $6.071bn and N66.4bn in outstanding revenues were owed to the Federal Government as of June.
He noted that unpaid royalties and gas flare penalties accounted for $6.049bn and N65.9bn due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“Additionally, outstanding taxes, including petroleum profit taxes, company income taxes, and VAT, totaled approximately $21.926m and N492.8 million owed to the Federal Inland Revenue Service (FIRS),” Orji added.
He said the NEITI report also provided insights into fuel importation and subsidy claims, noting that 23.54 billion liters of petrol were imported in 2022, dropping to 20.28 billion litres.
Orji added, “In 2023, an overall 14 per cent decline was attributed to the removal of fuel subsidies.
“Over the period from 2006 to 2023, claims of under-recovery and price differentials reached an eye-watering N15.87trn, with N4.714trn claimed in 2022 alone.
“On crude oil production, the figures reflect a mixed bag: in 2022, production stood at 490.945 million barrels, marking an 11 per cent decrease from 2021.”
He, however, noted that 2023 saw a rebound with production rising to 537.571 million barrels, an increase of 9.5 per cent.
“Crude lifting mirrored this upward trend, reaching 534.159 million barrels in 2023, an 11 per cent increase from the previous year,” the executive secretary said.
Orji also said the report highlighted significant progress in combating oil theft, with losses dropping dramatically from 36.69 million barrels in 2022 to just 7.68 million barrels in 2023, a 79 percent reduction.
The NEITI boss said that revenue generation figures also showed a positive trajectory, adding that in 2022, material companies generated $15.549bn.
He said this increased to $21.415bn in 2023, accounting for 96 percent and 95 percent of total industry revenues, respectively.
Orji clarified that NEITI’s commitment to fighting corruption and building public trust is vital for the sector’s future.
He said that the organisation’s regular audits and independent reports aim to ensure that revenue from the oil, gas, and solid minerals sectors benefits all Nigerians.
In an appeal to the media, Orji stressed journalists’ crucial role in promoting transparency and holding power accountable
