The Nigeria Extractive Industries Transparency Initiative (NEITI) has reported significant economic losses for Nigeria due to crude oil theft and sabotage of crude assets during the period of 2009 to 2020, amounting to approximately N16.25 trillion.
Crude oil barrels unaccounted for
This substantial financial setback is attributed to the disappearance of over 619.7 million barrels of crude oil within that time frame.
Speaking at a roundtable event to discuss NEITI’s 2022 industry report, Ogbonnaya Orji, the Executive Secretary of NEITI, also disclosed that the country’s expenditure on subsidy payments reached N13.7 trillion from 2005 to 2021.
Notably, the latest report reflects a shift towards utilizing local companies for preparation, contributing to the empowerment of indigenous businesses.
During the roundtable, the report received endorsement, although some civil society group members highlighted the need for minor revisions to address insignificant inaccuracies.
NEITI announced its intention to provide essential data pertaining to the utilization of the 13 percent derivation paid to oil-producing states and detailed information on Nigeria’s petrol consumption.
This initiative aims to provide transparency in tracking monthly allocations to oil-producing states, a topic that has garnered political debate, as states with mineral resources advocate for inclusion.
The matter of petrol consumption in Nigeria has been of great interest following the removal of subsidies.
Prior to subsidy removal, the official daily petrol consumption stood at around 66 million liters, although a substantial portion was allegedly being smuggled abroad.
Since the subsidy removal, consumption has seen a decline of around one-third, as reported by government regulatory figures.
Orji emphasized the importance of the baseline study, as it serves as a crucial tool to assess whether states are receiving their rightful allocations and whether the government is adhering to its financial commitments.