The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the country generated over $831.14 billion in revenue from the oil and gas sector between 1999 and 2023.
NEITI’s Executive Secretary, Ogbonnaya Orji, disclosed this on Monday while appearing before the Senate Committee on Public Accounts, chaired by Senator Ahmed Wadada. The session focused on the findings of NEITI’s 16-cycle reports, covering 78 firms in the extractive industries.
However, Orji warned that crude oil theft has cost Nigeria an estimated 701.48 million barrels since 2009, when NEITI began tracking losses.
The NEITI boss also stated that Nigeria requires $20 billion annually for the next 10 years to develop its gas infrastructure, emphasizing the need for urgent investment in the sector.
Solid Minerals Sector and Revenue Collection Challenges
Speaking on the solid minerals sector, Orji noted that it contributed ₦1.56 trillion in revenue between 2021 and 2023. Despite this, the sector still accounts for less than 1% of Nigeria’s GDP, highlighting the need for reforms.
According to NEITI, the top states for solid mineral activities in 2021 were Ogun, Kogi, Cross River, and the Federal Capital Territory (FCT). The agency recommended a review of the Solid Minerals Act to ease operations in the sector, similar to how the Petroleum Industry Act (PIA) was passed to address oil and gas sector challenges.
Additionally, Orji revealed that $6.1 billion in outstanding revenue from royalties remains uncollected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Inland Revenue Service (FIRS).
Concerns Over PIA Implementation
Orji raised concerns about the implementation of the PIA, stating that the absence of a clear strategy has allowed industry players to operate with minimal oversight.
He recalled that the administration of former President Muhammadu Buhari had set up a committee to develop an implementation framework for the PIA, but it failed to conclude its work before the new government took over in May 2023.
“The PIA is now being implemented without a plan or strategy. We recommend that either a new committee is set up or the work of the previous one is revisited,” Orji stated.
Senate to Probe Revenue-Generating Agencies
Meanwhile, the Senate Committee on Public Accounts has announced plans to conduct a public hearing on revenue generation by key agencies, including the NNPC Limited (NNPCL), FIRS, and NUPRC.
Senator Aliyu Wadada confirmed that these agencies would be summoned to explain their revenue operations, stating,
“We are going to invite all of them; we will conduct a public hearing on their revenue operations.”
The upcoming probe is expected to address revenue leakages, oil theft, and poor implementation of key policies, as Nigeria seeks to optimize earnings from its natural resources.
