Follow Us on Google
By Adewale Sanyaolu
The Nigerian Extractive Industry Transparency Initiative (NEITI) has emphasised that transparency and accountability are the cornerstone principles required to attract and sustain long-term investment in Nigeria’s energy sector.
It said these values foster trust, ensure sound governance and create a stable environment for investors.
The Executive Secretary, NEITI, Mr. Orji Ogbonnaya Orji, disclosed this at the Association of Energy Correspondents of Nigeria (NAEC) Annual Strategic Conference held recently in Lagos.
Orji noted that for Nigeria to unlock its vast energy resources, transparency and accountability must be prioritised because investors need assurance that their capital will be deployed in an environment where corruption is addressed and the rules are clear.
The NEITI Executive Secretary, who was represented by the South-West Zonal Representative on the NEITI Board, Mr. Taiwo Olasupo, listed other criteria to include; open processes, stable policies, stable environment, availability of information and where governance is transparent and predictable.
Without the above listed pillars, Orji argued that no serious investor will commit significant capital to the sector. ‘‘Openness in governance, especially in resource management and revenue collection, is essential to restoring investors’ trust and confidence,’’.
He explained that the role of NEITI was to ensure that the oil, gas, and solid minerals sectors operate transparently and that the revenues generated are managed for the benefit of all Nigerians.
In promoting its statutory role, he said 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 releases its independent industry reports on the oil and gas sectors. These reports, covering the period 2022 and 2023, were released in Abuja recently,’’. He noted that the 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 per cent 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.
He added that Fiscalised crude oil production in 2022 stood at 490.945 million barrels, an 11per cent decrease from 2021 while 2023 saw an increase to 537.571 million barrels, reflecting a 9.5 per cent rise. Similarly, total crude lifting in 2023 was 534.159 million barrels, representing an 11 per cent increase from 2022.
According to him, the report further indicated a significant reduction in crude oil theft and losses, with 7.68 million barrels stolen or lost in 2023—a 79 per cent drop from the 36.69 million barrels lost in 2022.
On revenue generation, he said material companies accounted for $15.549 billion (96 per cent) of revenues generated in the oil and gas industry, while in 2023, this figure rose to $21.415 billion (95 per cent). These revenues, he said, came from 17 identified streams, including taxes, oil and gas sales, NLNG dividends, royalty payments, and gas flare penalties
Orji, further reiterated the critical role of the media in driving transparency and accountability in the extractive sector, saying NEITI and the media share a common mandate—to inform, educate, and hold those in power accountable.
‘‘Journalists play a crucial role in amplifying the findings of our reports and ensuring that the wider public understands the implications of corruption, mismanagement, and inefficiencies in the sector.
We need you as partners in this fight. By bringing NEITI’s reports to the attention of Nigerians, you help ensure that the debate on transparency in the energy sector remains alive.
Your stories and investigations have the power to expose corruption and influence reform, driving the narrative for a better-governed, more transparent energy sector that benefits all Nigerians.
Accountability and transparency are not mere buzzwords; they are the foundation upon which sustainable investment, economic stability, and social equity are built.
NEITI remains committed 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,’’.
