Lagos, Nigeria – Dr. Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), disclosed that Nigeria lost approximately $1.84 billion worth of petroleum products from its refineries over a nine-year period. This revelation was made during the opening ceremony of the 2024 NEITI board retreat in Lagos on Monday.
Orji highlighted that between 2009 and 2018, a staggering 4.2 billion litres of petroleum products were lost due to oil theft from the refineries. This loss, estimated at 140,000 barrels per day, has had significant negative economic impacts on Nigeria.
He emphasized the seriousness of the issue, noting that previous administrations had set up special panels to address oil theft and losses. NEITI itself has produced reports with recommendations aimed at combating this persistent challenge.
The executive secretary underscored the ongoing threat to Nigeria’s economy posed by the global shift from fossil fuels to renewable energy sources. With declining global demand for oil, he stressed the urgency for policy decisions and strategies to mitigate the impact on Nigeria’s extractive sector and overall economy.
In response to these challenges, Orji urged the current administration to implement NEITI’s recommendations and collaborate closely with stakeholders to tackle issues such as oil theft, illegal mining, and pipeline governance challenges.
Meanwhile, Governor Babajide Sanwo-Olu of Lagos State, represented by the Commissioner for Energy, Biodun Ogunleye, emphasized the need for a review of laws governing the control and exploitation of Nigeria’s mineral resources. This, he argued, would promote investments in the extractive industry, enhance environmental sustainability, and drive economic diversification.
The statements were made at a critical juncture when Nigeria faces not only fiscal challenges from oil revenue declines but also the imperative to adapt to a changing global energy landscape.
The NEITI board retreat continues for five days, focusing on developing strategies to address these pressing issues in Nigeria’s extractive industries.
