The Nigeria Extractive Industries Transparency Initiative (NEITI) has released alarming data regarding crude oil losses and revenue shortfalls in Nigeria for 2023.
According to NEITI, approximately 7.68 million barrels of crude oil were either stolen or lost in 2023. This figure, while reflecting a 79% decrease from the previous year, underscores ongoing concerns about oil theft and mismanagement in the country.
“Report revealed that in 2023, about 7.68 million barrels of crude oil were either stolen or lost, a 79% drop compared to the figure recorded in 2022,” noted NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji.
Beyond the crude oil theft, NEITI also disclosed that oil and gas companies owe the federal government significant unpaid revenues, amounting to $6.071 billion and N66.4 billion. This debt includes $6.049 billion and N65.9 billion in unpaid royalties and gas flare penalties owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as of August 31.
Additionally, $21.9 million and N492.8 million in petroleum profit taxes, company income taxes, withholding taxes, and value-added tax (VAT) were owed to the Federal Inland Revenue Service (FIRS) as of June 2024.
The report highlighted a 14% reduction in fuel imports, dropping from 23.54 billion liters in 2022 to 20.28 billion liters in 2023.
Despite these challenges, Nigeria’s crude oil production increased by 9.5% in 2023, with production reaching 537.571 million barrels, up from 490.945 million barrels in 2022.
Dr. Orji underscored the essential role of Civil Society Organisations (CSOs) in enhancing transparency and accountability within the extractive industries. He encouraged CSOs to engage with critical issues highlighted in the report, especially those related to environmental protection and revenue collection.
The Nigerian government continues to grapple with the challenges of oil losses, unpaid revenues, and environmental concerns. Combatting corruption and increasing transparency in the oil and gas sector are vital for Nigeria’s economic stability and progress.