Business
THE Nigeria Extractive Industries Transparency Initiative (NEITI) has emphasised the importance of accountability and transparency in the nation’s energy sector.
Its Executive Secretary, Dr Orji Ogbonnaya Orji, said this at the Association of Energy Correspondents Annual Strategic International Conference on Thursday in Lagos.
The theme of the 2024 conference is “Gas As Energy Transition Fuel : “Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics””.
Orji, who was represented by Mr Taiwo Olasupo, South West Zonal Representative, NEITI Board, said that these principles were essential for attracting long-term investments necessary to harness Nigeria’s vast energy resources.
“Without these pillars, no serious investor will commit significant capital to our sector,” he stated, reinforcing the link between transparency and investor confidence, ” he said.
Orji, who shared key findings from NEITI’s recently released 2022/2023 Oil and Gas Industry Reports, revealed that as of June, over $6.071 billion and N66.4 billion in outstanding revenues were owed to the Federal Government.
He noted that unpaid royalties and gas flare penalties accounted for $6.049 billion and N65.9 billion due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“Additionally, outstanding taxes, including petroleum profit taxes, company income taxes, and VAT, totaled approximately $21.926 million and N492.8 million owed to the Federal Inland Revenue Service (FIRS),” Orji added.
He said that the NEITI report also provided insights into fuel importation and subsidy claims, noting that 23.54 billion liters of Premium Motor Spirit (PMS) were imported in 2022, dropping to 20.28 billion litres.
Orji added, “In 2023, an overall 14 per cent decline was attributed to the removal of fuel subsidies.
“Over the period from 2006 to 2023, claims of under-recovery and price differentials reached an eye-watering N15.87 trillion, with N4.714 trillion claimed in 2022 alone.
“On crude oil production, the figures reflect a mixed bag: in 2022, production stood at 490.945 million barrels, marking an 11 per cent decrease from 2021.”
He, however, noted that 2023 saw a rebound with production rising to 537.571 million barrels, an increase of 9.5 per cent.
“Crude lifting mirrored this upward trend, reaching 534.159 million barrels in 2023, an 11 per cent increase from the previous year,” the executive secretary said.
Orji also said that the report highlighted significant progress in combating oil theft, with losses dropping dramatically from 36.69 million barrels in 2022 to just 7.68 million barrels in 2023, a 79 per cent reduction.
The NEITI boss said that revenue generation figures also showed a positive trajectory, adding that in 2022, material companies generated $15.549 billion.
This, he said, increased to $21.415 billion in 2023, accounting for 96 per cent and 95 per cent of total industry revenues, respectively.
Orji made clear that NEITI’s commitment to fighting corruption and building public trust is vital for the sector’s future.
He said that the organiaation’s regular audits and independent reports aim to ensure that revenue from the oil, gas, and solid minerals sectors benefits all Nigerians.
In an appeal to the media, Orji stressed the crucial role journalists play in promoting transparency and holding power accountable.
“Your stories and investigations can expose corruption and drive reform,” he stated, inviting energy correspondents and stakeholders to partner with NEITI in this vital mission. (NAN)
A.I
Oct. 3, 2024
Tags: Dr Orji Ogbonnaya Orji Mr Taiwo Olasupo NEITI NUPRC
