The Federal Government of Nigeria lost approximately 13.5 million barrels of crude oil, valued at $3.3 billion, to oil theft and pipeline sabotage between 2023 and 2024, according to the Nigerian Extractive Industries Transparency Initiative (NEITI).
The revelation was made by NEITI Executive Secretary, Dr. Ogbonnaya Orji, at the 2025 Association of Energy Correspondents of Nigeria (NAEC) Conference held in Lagos on Thursday. He said the losses, beyond their economic implications, reflect systemic weaknesses and a lack of accountability in the management of the country’s natural resources.
“These losses are not just economic—they represent broken trust, institutional weaknesses, and missed opportunities for national progress,” Orji stated. “Transparency and accountability are not optional. They are existential.”
Nigeria’s Energy Future Depends on Governance, Not Just Reserves
Speaking on the conference theme, “Nigeria’s Energy Future: Exploring Opportunities and Addressing Risks for Sustainable Growth,” Orji stressed that the country’s future in the energy sector will not be determined by the size of its oil and gas reserves, but by how transparently and prudently those resources are managed.
“The era of secrecy in resource governance is over. Our energy future must rest on verifiable data, open contracts, measurable emissions, and accountable institutions,” he emphasized.
Orji highlighted that the $3.3 billion loss could have financed a full year of the federal health budget or provided electricity access to millions of underserved Nigerians.
NEITI Report Highlights Oil Revenue and Outstanding Remittances
Dr. Orji also disclosed that, according to NEITI’s latest 2021–2022 Oil and Gas Industry Reports, Nigeria earned $23.04 billion in 2021 and $23.05 billion in 2022 from the petroleum sector.
However, the reports also identified ₦1.5 trillion in outstanding remittances owed to the Federation by various companies and government agencies. These funds, if recovered, could significantly support energy infrastructure, education, and healthcare development across the country.
“Our reports are not merely for record-keeping. They serve as tools for policy reform, institutional accountability, and public oversight,” Orji added.
NEITI’s Transparency-Driven Reforms
Orji stated that NEITI has evolved from an audit-focused agency to a central driver of governance reforms in Nigeria’s extractive industries. Key achievements include:
- Institutionalised sector audits for oil, gas, and solid minerals.
- Launch of the Beneficial Ownership Register, unmasking true owners of over 4,800 extractive assets to combat corruption and illicit financial flows.
- Development of the NEITI Data Centre, offering real-time open access to industry information.
- Strategic partnerships with NUPRC, NMDPRA, and NCDMB to enhance transparency in licensing, metering, and host community trust management.
- Introduction of the Just Energy Transition and Climate Accountability Framework to guide Nigeria’s shift to renewable energy in a fair and inclusive manner.
“These are not ceremonial milestones. They are practical governance tools to make transparency the DNA of Nigeria’s extractive sector,” Orji noted.
Transparency Is Economic Strategy, Not Bureaucracy
NEITI maintains that transparency attracts investment, technology, and global partnerships, and is therefore essential for Nigeria’s competitiveness in a rapidly transitioning global energy market.
“Transparency is not a bureaucratic exercise—it is an economic imperative. Data builds trust, and trust drives investment,” Orji declared.
A Call to Action: Trace Every Dollar, Every Barrel
As Nigeria positions natural gas as its transition fuel and embraces renewable energy as the future, NEITI is calling for verifiable, data-driven governance across the energy value chain.
“Every barrel produced, every cubic foot of gas commercialised, and every kobo earned must contribute to national development—in full public view,” said Orji.
“NEITI envisions a sector where every dollar is traceable, every contract is public, every decision is transparent, and every Nigerian can see how natural resources translate into national prosperity.”
