Nigeria earned $741.48 billion from oil and gas over a period of 21 years covering 1999 and 2020, according to Nigeria Extractive Industries Transparency Initiative (NEITI).
This was disclosed by the Executive Secretary of the organization, Dr Ogbonnaya Orji, during a stakeholders’ engagement forum on the implementation of the Petroleum Industry Act (PIA) in Abuja. Orji said the reports involve 25 cycles of audit of the oil and gas sector.
“The 2021 oil and gas sector audit is currently ongoing and will soon be released.
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“This is guided by a five-year strategic plan (2022-2026) which will enable the agency to establish a presence and operate at sub-national levels to support government’s revenue growth plan and resources mobilization,” he explained.
The Nigerian oil sector is riddled with corruption and malfeasance that have enabled revenue shortfalls for years, particularly in 2022, when the country’s oil production was halved by oil theft. Consequently, there have been calls for the government to ensure transparent operation in the industry.
Orji said that he is delighted that NEITI’s reports had led to the recovery of several billions of dollars by the government from companies operating in the sector. He added that the recommendations made by NEITI in its reports have also triggered huge reforms in the sector.
Recently, President Muhammadu Buhari signed the Petroleum Industry Act (PIA), aimed at sanitizing the industry. The PIA which birthed the Nigerian National Petroleum Corporation Limited (NNPCL), has not been fully implemented. Orji said that NEITI, being a member of the Presidential Steering Committee (PSC), would provide the information and data in the oil and gas sector that would help to effectively implement the PIA.
“As an agency charged with promoting transparency and accountability in the extractive sector, NEITI has responsibility to facilitate and strengthen participation by diverse stakeholders for a successful implementation of the PIA.
“Therefore, the implementation of the Act and full operationalisation of its provisions are of great interest to NEITI and its stakeholders.
“NEITI has been working with relevant stakeholders and leveraging on our experience and exposure in the oil and gas sector to ensure that the implementation of the PIA delivers its objective and desired results,” Orji said.
He explained that NEITI has pioneered a programme designed to provide platform for stakeholders, and state and non-state actors to discuss and engage with the process of PIA implementation. In addition, he said that the platform will serve as a platform to update the public and galvanize the needed public support for the implementation of PIA.
“As an agency with the mandate to promote transparency and accountability in the extractive sectors, with a multi-stakeholders platform for dialogue on natural resources governance, NEITI has a huge responsibility to facilitate and strengthen the participation of diverse stakeholders for a successful implementation of the PIA.
“So far, NEITI has conducted and published 25 cycles of audit reports in the oil and gas sector, covering the period 1999-2020. From the report, a total of $741.48 billion was recorded as revenue earnings to government coffers from the sector.
“Besides, NEITI reports have led to the recovery of several billions of dollars by the government from companies operating in the sector. Recommendations of our reports are also triggering huge reforms in the sectors, one of which is the PIA we are discussing here today,” he added.