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

NEITI reports that Nigeria earned $831.14 billion from oil and gas revenues over the past 24 years, highlighting the sector’s impact on the nation’s economy.

The Nigeria Extractive Industries Transparency Initiative (NEITI) reported that between 1999 and 2023, Nigeria’s oil and gas sector generated over $831.14 billion in revenue.

The Executive Secretary of NEITI, Ogbonnaya Orji, mentioned this on Monday during his appearance before the Senate Committee on Public Accounts.

He also mentioned that the country needs $20 billion each year over the next decade to build its gas infrastructure.

The committee, led by Senator Ahmed Wadada, was being briefed on the findings from NEITI’s 16-cycle reports that cover 78 companies in the extractive industries.

The head of NEITI also announced that, between 1999 and 2023, Nigeria generated more than $831.14 billion in revenue from the oil and gas sector.

He noted, however, that crude oil theft has cost the country an estimated 701.48 million barrels since NEITI began tracking these losses in 2009.

Discussing the solid minerals sector, Orji revealed that it generated 1.56 trillion naira in revenue from 2021 to 2023.

However, he mentioned that despite the government’s ongoing efforts, the sector still accounts for less than one percent of the country’s GDP.

According to NEITI, Ogun, Kogi, Cross Rivers, and the Federal Capital Territory were the leading states in solid minerals activities in 2021.

The agency recommended revising the Solid Minerals Act to facilitate operations in the sector, similar to how the PIA was enacted to address challenges in the oil and gas industry.

He also revealed that $6.1 billion in outstanding royalties had not yet been collected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Inland Revenue Service.

Orji once more expressed worries regarding the implementation of the Petroleum Industry Act (PIA), noting that the lack of a clear strategy has enabled industry players to operate with minimal oversight.

He remembered that during ex-President Muhammadu Buhari’s administration, a committee was established to create an implementation framework for the PIA. However, this committee did not complete its work before the new government assumed office in May 2023.

He mentioned that the PIA is currently being implemented without a plan or strategy. He suggested establishing a new committee or revisiting the work of the previous one as potential solutions.

In the meantime, the Senate Committee on Public Accounts has revealed its intention to hold a public hearing regarding revenue generation by agencies like NNPCL, FIRS, and NUPRC.

Senator Aliyu Wadada stated that the agencies will be called in to clarify their revenue operations. “We plan to invite all of them and hold a public hearing on the matter,” he announced.