The oil and gas sector generated more than $ 831.14 billion in income for Nigeria between 1999 and 2023, according to the Nigeria extractive industries transparency (Neiti).
However, the theft of crude oil between 2009, when Neiti began to calculate the reports, and 2023 cost La Nación 701.48 billion barrels.
The Executive Secretary of Neiti, Dr. Orji Ogbonnaya Orji, revealed these figures on Monday in Abuja when he appeared before the Senate Public Accounts Committee (PAC).
Orji informed the Committee, chaired by Senator Ahmed Wadada, which his organization examined the records and remittances of 78 companies covered in their 16 cycles reports on the extractive industries before reaching these findings.
Providing the highlights of recent years, he told the committee that the entry of income in 2021 was $ 23 billion; In 2022, it was $ 35.78 billion; And in 2023, it stood at $ 30.86 billion.
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He pointed out that last year's entrance represented a 13 percent decrease compared to 2022.
“Nigeria has won $ 831.14 billion of the oil and gas sector between 1999 and 2023,” he said, added that pending income has not yet been raised by the Government stood at $ 6.1 billion.
“This outstanding income consists of royalties that the UPSTREAM Nigeria Petroleum Regulatory Commission (NUPRC) and the Federal Internal Income Service (FIR) have not yet charged,” he added.
Speaking about the challenges in the sector, Orji said that the promulgation of the Petroleum Industry Law (PIA) had not completely simplified operations between interested parties to maximize the country's profits from its investments.
For example, he informed the panel that there was still no implementation strategy for the law, which led to the interested parties that operate to their own discretion.
He recalled that although the administration of former President Muhammadu Buhari established a presidential committee in the PIA to develop an implementation plan, the Committee did not complete its allocation before the new government assumed the position in May 2023.
“PIA is now being implemented without a plan or strategy.
“Therefore, we recommend that a new committee be established or that the work of the previous one, which is not conclusive, is not reviewed,” he said.
Orji praised the efforts of the administration of President Bola Tinubu in the renewal of the country's refineries, stating that restoring them had been one of Neiti's long data recommendations.
He explained that the simultaneous operation of public public refineries and recently graduated would guarantee an adequate supply of oil products and a sustained reduction in pump prices.
In measures to stop the theft of oil and vandalism, Neiti suggested that oil companies should refrain from arbitrarily designating trained workers.
“These workers, especially when they are well trained, are later recruited by criminal elements to sabotage pipes and steal crude oil.
“There must be measures to protect the works of these workers' workers,” Orji recommended.
Speaking about the solid mineral sector, Orji revealed that it generated N1.56 billion in income between 2021 and 2023.
However, he pointed out that the sector still contributed less than one percent to the country's GDP, despite the efforts of the current government.
According to Neiti, the main states involved in solid mineral activities in 2021 were Ogun, Kogi, Cross River and the territory of the Federal Capital (FCT).
The agency requested a review of the solid mineral law to relieve operations in the sector, similar to how PIA was promulgated to address the challenges in the oil and gas sector.
The senators expressed their shock due to the “scarce income” generated by the solid mineral sector, arguing that it did not reflect the true scale of activities in the industry.
Senator Victor Umeh questioned: “Did you hit the Ministry of Development of Solid Minerals while compiling your report?
“What we see here does not take into account mining activities in places such as Zamfara, Nasarawa, Bauchi, Ebonyi and several others.
“The solid mineral minister was with us last week, and his report seemed more optimistic than this,” Umeh observed.
Senator Wadada added: “Gold and other resources are extracted daily. What is happening is ridiculous and unacceptable. We need to take this more seriously. “
However, Senator Osita Izunaso opposed the idea of ​​reviewing the mining law in the same way as PIA, arguing that the latter had not yielded the desired results.
“We should be discussing an increase in regulatory supervision, not necessarily a review of the law,” he said.
Orji acknowledged that the solid mineral sector should generate more income for the government, but questioned whether the funds were being correctly referred.
“The problem is not whether income is being generated, it is whether money is entering government accounts,” he said.
Meanwhile, the Committee announced plans to carry out a public hearing on the income generated by agencies such as the Nigerian National Petroleum Company Limited (NNPCL), FIRS and NUPRC of the oil and gas sector.
“We will invite all relevant agencies and hold a public hearing on income operations,” said Senator Wadada during the session in the National Assembly.
The committee also sought clarification on how Neiti was audited, since it tracks the income records of operational companies and government collections.
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