Nigeria’s Oil and Gas Sector Owes $6 Billion: NEITI Report
NEITI: $6 Billion Debt in Nigeria’s Oil and Gas Industry
Oil and Gas Industry Debt Hits $6 Billion, Says NEITI
BY SHEKWOPEYELO
The Nigeria Extractive Industries Transparency Initiative (NEITI) reports that the oil and gas industry owes the Federal Government $6.071 billion and N66.4 billion as of June 2024. This figure was disclosed during the presentation of NEITI’s 2022 and 2023 Independent Oil and Gas Industry Reports in Abuja on September 26, 2024.
Executive Secretary Dr. Orji Ogbonnaya Orji led the presentation, which included key figures such as Mr. Ola Olukoyede, Chairman of the Economic and Financial Crimes Commission (EFCC), and Sen. George Akume, Secretary to the Government of the Federation.
The report indicates that unpaid royalties and gas flare penalties amount to $6.049 billion and N65.9 billion, respectively, owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Additionally, the report reveals outstanding petroleum profit taxes and other dues to the Federal Inland Revenue Service (FIRS), totaling $21.926 million and N492.8 million.
Regarding fuel importation, the NEITI report shows a decline in Premium Motor Spirit (PMS) imports, with 23.54 billion liters imported in 2022 and 20.28 billion liters in 2023—a reduction of 3.25 billion liters or 14% due to the removal of fuel subsidies.
The report also highlights crude production trends, noting a decline from 556.130 million barrels in 2021 to 490.945 million barrels in 2022, followed by a recovery to 537.571 million barrels in 2023. Additionally, oil theft and losses dropped significantly in 2023, with 7.68 million barrels reported as stolen or lost, marking a 79% decrease from 2022.
NEITI’s findings emphasize the importance of addressing the regulatory framework and corruption risks in the oil and gas sector, with support from the European Union and the Rule of Law and Anti-Corruption (RoLAC) program.
