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By Isaac Anumihe, Abuja
Nigeria has faced staggering financial losses due to oil theft over the past 12 years, with the total amount reaching $46.16 billion. The figure is based on the theft of 619.7 million barrels of crude oil. Additionally, between 2009 and 2018, the country lost 4.2 billion liters of refined petroleum products, valued at $1.84 billion, from facilities operating at a rate of 140,000 barrels per day.
Dr. Orji Ogbonna Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), presented these findings at the ‘Strengthening Methane Emissions Reduction in Nigeria’s Oil and Gas Sector’ event, organized by the Natural Resources Governance Institute (NRGI) in Abuja. Dr. Orji noted that the total loss of crude oil value from 2009 to 2020 exceeds Nigeria’s foreign reserves and is nearly ten times the amount in the Excess Crude Account. While revenue losses can be quantified, the environmental and health impacts of emissions are more difficult to measure.
In August 2022, Nigeria unveiled a plan to transition from fossil fuels to renewable energy, targeting net-zero carbon emissions by 2060—ten years later than the global deadline. The plan emphasizes reducing carbon and methane emissions, developing renewable energy infrastructure, and fostering economic growth through improved energy access, efficiency, and security. It also aims to diversify the economy and create jobs.
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To realize these objectives, the Nigeria Energy Transition Plan (NETP) estimates a need for $1.9 trillion. This translates to approximately $10 billion in annual expenditures and nearly $40 billion in annual investments. The plan heavily depends on private and foreign capital.
Dr. Orji acknowledged the significant challenges in achieving the NETP’s goals, given the immense financial requirements to generate renewable energy for Nigeria’s population of over 200 million, projected to exceed 250 million by 2050. He commended President Ahmed Bola Tinubu’s administration for its commitment to climate action and energy transition, including the establishment of a Presidential Committee led by Tinubu to oversee these efforts.
NEITI has called for a seat on the Presidential Council to contribute its expertise in providing accurate information and data crucial for policy development and public discourse. NEITI’s involvement is deemed essential for navigating the complexities of the energy transition and addressing climate change challenges.
Akintunde Babatunde, Director of Programmes at the Centre for Journalism Innovation and Development (CJID), highlighted the urgency of reducing methane emissions in Nigeria’s oil and gas sector. He emphasized the need to balance gas expansion with environmental and social considerations. The Energy Transition Plan, aiming for net-zero emissions by 2060, will address critical sectors and utilize gas as a transitional fuel while ensuring sustainable development.
