.As NEITI records 9.5% rise in crude production, 79% reduction of oil theft in 2023
CHIGOZIE AMADI
Nigeria Extractive Industries Transparency Initiative (NEITI) has affirmed that Openness in governance, resource management and revenue collection are essential to restoring investors trust and confidence, even as it pointed out that accountability and transparency are key to driving investment in the energy sector
This is at it revealed that last year’s crude oil production was 537.571 million barrels, a 9.5% increase compared to its record in 2022 which stood at 490.945 million barrels. On oil theft and crude losses, NEITI reported that there was a significant reduction, as 7.68 million barrels were stolen or lost in 2023, a 79% decline from the 36.69 million barrels lost in 2022.
The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, made these known in his address during the 2024 Annual Strategic International Conference ,organized the Association of Energy Correspondents of Nigeria (NAEC) at Eko hotel, Victoria Island, Lagos
Orji, who was represented by the South-West Zonal Representative on the NEITI Board, Olasupo Taiwo, noted that the agency is saddled with the responsibility of ensuring that oil, gas, and solid minerals sectors operate transparently and that the revenues generated are managed for the benefit of all Nigerians, hence its independent reports on the sectors.
He shared more insights from the NEITI’s 2022/2023 Oil and Gas Industry Reports recently released on its official portal— www.neiti.gov.ng.
He said, “as of June 2024, the outstanding collectible revenues due to the Federal Government in the oil and gas industry stood at over $6.071 billion and N66.4 billion. A breakdown shows that $6.049 billion and N65.9 billion were unpaid royalties and gas flare penalties due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Additionally, there were $21.926 million and N492.8 million in outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT due to the Federal Inland Revenue Service (FIRS).
“The 2022/2023 NEITI report revealed that 23.54 billion liters of Premium Motor Spirit (PMS) were imported into Nigeria in 2022, while 20.28 billion liters were imported in 2023—a 14% decline attributed to the removal of the subsidy. From 2006 to 2023, a total of N15.87 trillion was claimed as under-recovery/price differentials, with the highest amount of N4.714 trillion recorded in 2022.
“In 2022, material companies accounted for $15.549 billion (96%) of revenues generated in the oil and gas industry, while in 2023, this figure rose to $21.415 billion (95%). These revenues came from 17 identified streams, including taxes, oil and gas sales, NLNG dividends, royalty payments, and gas flare penalties.”
The NEITI Executive Secretary reiterated the agency’s commitment to working with all stakeholders, including the media, to ensure that Nigeria’s energy sector becomes a beacon of transparency and accountability, and that the revenues and opportunities in the sector support our national development and poverty reduction goals.
