The oil and gas sector generated over $831.14 billion in revenue for Nigeria between 1999 and 2023, according to the Nigerian Extractive Industries Transparency Initiative (NEITI).
However, crude oil theft between 2009—when NEITI began computing reports—and 2023 cost the nation 701.48 billion barrels.
The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, disclosed these figures on Monday in Abuja when he appeared before the Senate Committee on Public Accounts (PAC).
Orji informed the committee, chaired by Sen. Ahmed Wadada, that his organization examined the records and remittances of 78 firms covered in its 16-cycle reports on the extractive industries before arriving at these findings.
Providing highlights from recent years, he told the committee that revenue inflow 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 noted that last year’s inflow represented a 13 percent decrease compared to 2022.
“Nigeria has earned $831.14 billion from the oil and gas sector between 1999 and 2023,” he stated, adding that outstanding revenue yet to be collected by the government stood at $6.1 billion.
“This outstanding revenue consists of royalties that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Inland Revenue Service (FIRS) are yet to collect,” he added.
Speaking on challenges in the sector, Orji said the enactment of the Petroleum Industry Act (PIA) had not fully streamlined operations among stakeholders to maximize the country’s earnings from its investments.
For instance, he informed the panel that there was still no implementation strategy for the law, leading to stakeholders operating at their own discretion.
He recalled that although the administration of former President Muhammadu Buhari set up a Presidential Committee on the PIA to develop an implementation plan, the committee did not complete its assignment before the new government took office in May 2023.
“The PIA is now being implemented without a plan or strategy.
“So, we recommend that either a new committee is established or the work of the previous one, which remains inconclusive, is revisited,” he said.
Orji commended the efforts of President Bola Tinubu’s administration in revamping the country’s refineries, stating that restoring them had been one of NEITI’s long-standing recommendations.
He explained that the simultaneous operation of public and newly licensed private refineries would ultimately ensure adequate petroleum product supply and a sustained reduction in pump prices.
On measures to curb oil theft and vandalism, NEITI suggested that oil companies should refrain from arbitrarily laying off trained workers.
“These workers, especially when well-trained, are later recruited by criminal elements to sabotage pipelines and steal crude oil.
“There should be measures to protect the jobs of these company workers,” Orji recommended.
Speaking on the solid minerals sector, Orji revealed that it generated N1.56 trillion in revenue between 2021 and 2023.
However, he noted that the sector still contributed less than one percent to the country’s GDP, despite ongoing government efforts.
According to NEITI, the top states engaged in solid minerals activities in 2021 were Ogun, Kogi, Cross River, and the Federal Capital Territory (FCT).
The agency called for a review of the Solid Minerals Act to ease operations in the sector, similar to how the PIA was enacted to address challenges in the oil and gas sector.
Senators expressed shock at the “meager revenue” generated from the solid minerals sector, arguing that it did not reflect the true scale of activities in the industry.
Sen. Victor Umeh questioned, “Did you liaise with the Ministry of Solid Minerals Development while compiling your report?
“What we see here does not account for mining activities in places like Zamfara, Nasarawa, Bauchi, Ebonyi, and several others.
“The Minister of Solid Minerals was with us last week, and his report seemed more optimistic than this one,” Umeh observed.
Sen. Wadada added, “Gold and other resources are being mined daily. What is happening is ridiculous and unacceptable. We need to take this more seriously.”
However, Sen. Osita Izunaso opposed the idea of reviewing the mining law in the same manner as the PIA, arguing that the latter had not yielded the desired results.
“We should be discussing increased regulatory oversight, not necessarily a review of the law,” he stated.
Orji acknowledged that the solid minerals sector should be generating more revenue for the government but questioned whether the funds were being remitted properly.
“The issue is not whether revenue is being generated—it is whether the money is entering government accounts,” he remarked.
Meanwhile, the committee announced plans to conduct a public hearing on the revenue generated by agencies such as the Nigerian National Petroleum Company Limited (NNPCL), FIRS, and NUPRC from the oil and gas sector.
“We will invite all relevant agencies and conduct a public hearing on revenue operations,” Sen. Wadada declared during the session at the National Assembly.
The committee also sought clarification on how NEITI itself was audited, given that it tracks revenue records of operating firms and government collections.
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