The Nigeria Extractive Industries Transparency Initiative (NEITI) has stressed that transparency and accountability are necessary fundamental principles to attract and sustain long-term investment in Nigeria’s energy sector.
He said these values foster trust, ensure sound governance and create a stable environment for investors.
NEITI Director-General, Mr. Orji Ogbonnaya Orji, disclosed this at the Nigeria Association of Energy Correspondents (NAEC) Annual Strategic Conference held in Lagos recently.
Orji noted that transparency and accountability must be prioritized if Nigeria is to unlock its vast energy resources. Because investors need assurance that their capital will be deployed in an environment that combats corruption and has clear rules.
The NEITI Director-General, who was represented by Mr. Taiwo Olasupo, the South West Region Representative on the NEITI Board of Directors, listed other criteria to be included. Where open processes, stable policies, stable environments, information availability, and governance are transparent and predictable.
Without the pillars enumerated above, serious investors will not pour significant amounts of money into the sector, Orji maintained. “Openness in governance, particularly in resource management and revenue collection, is essential to restore investor trust and confidence.”
He explained that the role of NEITI is to ensure that the oil, gas and solid minerals sector operates transparently and that the revenue generated is managed for the benefit of all Nigerians.
He said that in promoting its legal role, NEITI, civil society and the media are natural allies in the ongoing fight against corruption and the pursuit of good governance in Nigeria’s extractive industries. .
“As part of our efforts to fight corruption and build public trust, NEITI publishes independent industry reports on the oil and gas sector. These reports, covering the period 2022 and 2023, recently He said in the NEITI report that 23.54 billion liters of Premium Motor Spirit (PMS) were imported into Nigeria in 2022, while 20.2 billion liters were imported in 2023. He pointed out that it was revealed that 80 million liters were imported, a decrease of 14% due to the removal of subsidies.
“From 2006 to 2023, a total of N15.87 trillion was claimed as unrecovered and price difference, with the highest amount recorded in 2022 at N4.714 trillion.”
He said fiscalized crude oil production in 2022 was 490,945,000 barrels, down 11% from 2021, but increased to 537,571,000 barrels in 2023, reflecting a 9.5% increase. he added. Similarly, total crude oil pumping in 2023 was 534,159,000 barrels, an 11% increase from 2022.
He said the report also showed a significant decline in oil theft and loss, with 7.68 million barrels stolen and lost in 2023, a 79% decrease from 36.69 million barrels lost in 2022. .
In terms of revenue generation, he said materials companies account for $15.549 billion (96%) of the revenue generated in the oil and gas industry, but this figure will increase to $21.415 billion (95%) in 2023. ) said it would increase. He said these revenues come from 17 identified streams, including taxes, oil and gas sales, NLNG dividends, royalty payments and gas flaring fines.
Mr. Orji further reiterated the important role of the media in promoting transparency and accountability in the mining sector, noting that NEITI and the media share a common mission to inform, educate and hold those in power to account. He said that
“Journalists play a critical role in amplifying the findings of our report and helping the wider public understand the impact of corruption, mismanagement and inefficiency in this sector.
We need you as a partner in this fight. By bringing the NEITI report to the attention of Nigerians, you can help ensure that the debate on transparency in the energy sector continues.
Your stories and investigations have the power to expose corruption and influence reform, driving a narrative for a better-managed and more transparent energy sector that benefits all Nigerians. .
Accountability and transparency are not just buzzwords. They are the foundation on which sustainable investment, economic stability and social equity are built.
NEITI will continue to work with all stakeholders, including the media, to ensure that Nigeria’s energy sector becomes a beacon of transparency and accountability, and that the sector’s revenues and opportunities support our national development and poverty reduction goals. I will continue to do my best. ”
