NEITI Urges Nigerian Government to Implement Report on Oil Theft and Vandalism.
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called on President Bola Tinubu to revisit and implement the recommendations of the Presidential Investigation Panel on oil theft, vandalism, and sabotage. This appeal was made by NEITI Executive Secretary Dr. Orji Ogbonnaya Orji during the ongoing five-day NEITI Board Retreat/Meeting in Lagos.
Dr. Orji emphasized the urgency of addressing oil theft and vandalism, highlighting that the report, previously presented to the Chief National Security Adviser, contains detailed recommendations on tackling these issues. He stressed the impact of oil theft on Nigeria’s crude oil production and revenue, pointing out that production should be at two million barrels per day, but current levels are significantly lower due to theft and vandalism.
“Our crude oil production ought to have been two million barrels per day, but we are doing less, and it is affecting our revenue. No foreigners can come into the country and steal crude oil without the connivance of our nationals,” Dr. Orji stated.
He further highlighted the retreat as a crucial platform for NEITI to reflect on its role in reshaping the extractive industry. Discussions focused on addressing challenges such as oil theft, illegal mining, pipeline vandalism, environmental damage, and other governance issues that have led to revenue losses and missed investment opportunities.
Dr. Orji noted that Nigeria’s decision to join the global Extractive Industries Transparency Initiative (EITI) in 2003 was driven by the belief that transparency in the extractive sector would pave the way for sustainable development and poverty reduction. He also warned about the significant risks posed by the global transition from fossil fuels to renewable energy sources, urging timely policy decisions to mitigate these challenges.
“In 2021, crude oil and gas accounted for 46% of energy use and 78% of electricity generation in Nigeria. The transition to renewable energy requires significant financial investment to generate renewable energy to replace that previously generated from carbon fuels,” Dr. Orji explained.
He revealed that Nigeria lost 619.7 million barrels of crude oil valued at $46.16 billion between 2009 and 2020 due to theft. Additionally, between 2009 and 2018, the country lost 4.2 billion liters of petroleum products from refineries, valued at $1.84 billion.
Sen. George Akume, NEITI Board Chairman, commended the newly inaugurated board members, emphasizing their diverse competencies, integrity, and commitment to transparency and accountability in managing Nigeria’s economic resources.
“The present administration is passionate and fully committed to the global Extractive Industries Transparency Initiative (EITI), the work of NEITI, and the visible impacts which the EITI process has achieved so far in Nigeria,” Akume said.
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Lagos State Governor Babajide Sanwo-Olu, represented by Mr. Abiodun Ogunleye, Commissioner for Energy and Mineral Resources, called for a re-examination of existing laws governing oil and other mineral resources to promote investments and diversify the economy.
Dr. Erisa Danladi, Civil Society Representative at the National Stakeholders Working Group (NSWG), advocated for a transparent and fair distribution of revenues from the extractive industries. She emphasized the importance of investing these revenues in public infrastructure, education, healthcare, and other critical sectors to improve the quality of life for all Nigerians.
“We expect the new board to foster an inclusive environment where civil society, local communities, industry players, and government bodies can engage constructively. Transparency is crucial for holding both companies and the government accountable,” Dr. Danladi stated.
