Nigeria Generated $831.14bn From Oil & Gas in 24 Years — NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that Nigeria generated a staggering $831.14 billion in revenue from the oil and gas sector between 1999 and 2023. This disclosure was made by NEITI’s Executive Secretary, Ogbonnaya Orji, on Monday during a session with the Senate Committee on Public Accounts, where he provided insights from the agency’s 16-cycle reports on 78 firms in the extractive industries.

Orji also highlighted a critical need for infrastructure investment, stating that Nigeria requires an annual $20 billion over the next 10 years to develop its gas infrastructure, which is vital for the nation’s economic future.

While Nigeria’s revenue from oil and gas is significant, Orji noted the continuing issue of crude oil theft, which has resulted in an estimated loss of 701.48 million barrels of oil since 2009. These losses have had a major impact on the nation’s revenue.

Turning to the solid minerals sector, Orji revealed that it contributed 1.56 trillion naira in revenue between 2021 and 2023. Despite this, the sector still contributes less than one percent to Nigeria’s GDP. He emphasized the need for reforms in the sector, calling for a review of the Solid Minerals Act to enhance operations, similar to the legislative reforms seen in the oil and gas sector under the Petroleum Industry Act (PIA).

Additionally, Orji flagged concerns about the Petroleum Industry Act’s (PIA) implementation. He stated that a lack of a clear strategy has allowed industry players to operate with minimal oversight. He also noted that a committee set up by the previous administration to develop an implementation framework for the PIA had failed to complete its work before the change of government in May 2023. Orji recommended that either the committee’s work be revisited or a new one be established to develop a proper framework.

Furthermore, Orji disclosed that $6.1 billion in outstanding revenue from royalties had yet to be collected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Inland Revenue Service (FIRS).

In response to these findings, the Senate Committee on Public Accounts announced plans to conduct a public hearing to review the revenue generation operations of key agencies such as the Nigerian National Petroleum Corporation Limited (NNPCL), FIRS, and NUPRC. Senator Aliyu Wadada confirmed that these agencies would be summoned to explain their operations and revenue activities.

This ongoing review is part of the Senate’s efforts to ensure transparency and accountability in Nigeria’s extractive industries.